EC Georgia News

U.S. Representative Rick Allen (R-GA) has recently expressed opposition to the Biden administration's finalized rule affecting the classification of independent contractors, voicing concerns about its potential negative impact on workers' flexibility. The new regulation is expected to make it more difficult for companies to classify workers as contractors rather than employees.

Allen criticized the rule, stating, "Today, President Biden's USDOL finalized an overly restrictive independent contractor rule that will devastate MILLIONS of workers and businesses, eliminate employment opportunities, and topple the gig economy." The Congressman emphasized his concern over the potential impact on a vast number of workers and businesses, as well as its potential to destabilize the gig economy.

NewsMax reports that the U.S. Department of Labor's (DOL) proposed rule aims to classify workers as employees if they are "economically dependent" on a company. This change could have wide-ranging implications across various industries, particularly those reliant on contract workers such as app-based services. The DOL stated that factors such as the worker's potential for profit or loss, investment, permanency, level of employer control, and whether the work is integral to the employer's business would be considered in determining employee versus contractor status.

Allen's comment | X

The publication further notes that this rule change marks a departure from Trump-era regulations and is likely to face legal challenges. The Biden administration maintains that the previous rule contradicted wage laws and court precedents. Business groups have voiced strong opposition to this proposed rule change, predicting increased labor costs across sectors including trucking, retail, and manufacturing if these policy changes are implemented.

According to a press release by Allen's office, Allen added: "As I’ve visited with small business owners across Georgia’s 12th District, the number one issue I hear about is the need for workforce. To eliminate an employment model that has allowed millions of Americans to have the flexibility they need and helped countless individuals achieve the American Dream is inconceivable. My Employee Rights Act, which I introduced last year, would create a clear definition across federal laws to protect independent workers and provide essential protections for workers' rights, choices, and freedoms in the 21st-century economy."

Axios reports that employers will bear the initial responsibility of evaluating various criteria, including the level of employer control, required skills, relationship permanence, and worker investments like vehicle payments when determining worker classification.