Federal independent contractor regulation threatens the gig economy

In Politics by Michael Rae

The U.S. Department of Labor’s Wage and Hour Division released its much-anticipated regulations on worker classification, which are important for determining businesses’ obligations under the Fair Labor Standards Act. The distinction between independent contractors and employees has been hotly debated in recent years, coinciding with the rise of a gig economy that relies heavily on independent contractors. Unfortunately, this new Department of Labor (DOL) classification rule muddies the waters further, exposing businesses that hire independent contractors to risks of lawsuits and federal intervention. In response to these risks, businesses will be less likely to hire independent contractors, which would reduce

Read more at Reason.org