From JDSupra, Alana Genderson, Michael Jones, Michael Masling, Christopher Parlo, Eleanor Pelta, and John Ring discuss some of the changes to expect under a second Trump administration including making it easier for companies to classify workers as independent contractors. Alana, Michael, Michael, Christopher, Eleanor, and John write:
Wage and Hour
Considering how key wage and hour and employee classification laws have changed following administration shifts over the last 16 years, there is reason to believe that the second Trump administration will seek to rescind, reverse, modify, or put on hold some of the Biden administration’s rulemaking.
As two prime examples, on January 10, 2024 the DOL published a final rule scrapping the Trump-era independent contractor rule that focused on control factors and instead applying a totality-of-the-circumstances economic realities test. The new test’s ultimate inquiry is whether, as a matter of economic reality, the worker is economically dependent on the employer (and thus an employee) or in business for themselves (and thus an independent contractor) by reference to a nonexhaustive list of six factors.
While one of those factors is “control” over the worker, the importance of that factor is significantly diminished under the new Biden DOL rule, making it harder for individuals to be independent contractors. Given the history of this standard, it would not be surprising to see the new Trump administration go back to a control test or otherwise try to make it easier for gig workers to be independent contractors.
Source: The Impact of the US Election on Labor and Employment Law | Morgan Lewis – JDSupra