The US Department of Labor (DOL) is issuing Notices of Proposed Rulemaking (NPRMs) rescinding the Trump administration's rules for independent contractors and joint employment under the Fair Labor Standards Act (FLSA).
The White House has issued a memo directing the US Department of Labor (DOL) to consider postponing until March 23 any rules that were finalized after the November 3 election but have not yet gone into effect.
The Supreme Court of California held that employers reasonably could have foreseen it would have established a worker-friendly "ABC test" for classifying workers.
A new rule that could make it easier for businesses to classify workers as independent contractors rather than employees is scheduled to take effect March 8 - but it is likely to be frozen and possibly replaced.
Proposition 22 will amend the state code to establish that app-based drivers are independent contractors, not employees, as long as their hiring party fulfills certain requirements that will likely be easier to meet than the "ABC test" established last year by the state legislature.
The DOL has put forward five distinct factors to be used when determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA).
New amendments are intended to clarify and expand the ABC test, which governs independent contractor classification under California's wage and hour, workers' compensation, unemployment insurance and labor laws.
A new regulation, which may be finalized before the end of the year, is expected to establish an employer-friendly standard for independent contractor classification.
A federal judge has denied Uber and Postmates' request for an injunction blocking enforcement of AB5, California's law that reclassifies most independent contractors as employees.
If signed into law as expected, AB 5 would codify the California Supreme Court's 2018 "Dynamex" ruling as part of the state code and extend its application beyond the wage orders to include state labor and unemployment insurance laws.
News: HR guidance on legally classifying and managing independent contractors under federal tax and employment laws.
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