Posts tagged worker misclassification rule
Sean Higgins: Inflation has ruined progress on wages
September 2, 2024 // A new Labor Department rule promises to crack down on this alleged “worker misclassification.” The Federal Trade Commission also promised to crack down on the practice, though it hasn’t issued a rule to date. The Labor Department’s rule will make companies wary of hiring contract workers. Never mind that many workers prize the flexibility this freelance work allows. So workers have fewer options in the traditional jobs they could apply for, and fewer opportunities to earn a living through non-traditional methods such as freelancing. Wage growth has been largely wiped out by inflation. In short, the current administration couldn’t stick the landing for the economy as it recovered from the lockdown.
Beware the labor regs of March!
March 11, 2024 // A new rule from the federal government meant to protect workers is set to take effect today, March 11. It will instead leave most workers worse off by limiting their options for employment. Businesses will likely pull back from hiring entirely in many cases because the rules make it too risky. The rulemaking in question is the Labor Department’s (DOL) worker misclassification rule. The stated intent is to prevent situations where employers exploit workers. The rule is extremely vague on when business activities trip the line to exploitation however. DOL essentially leaves it up to federal regulators to decide. The rules won’t change things overnight. Regulators will still have to pursue cases based on them and court fights are sure to follow. But today is the day the mischief will officially start.