Most workers in the gig economy say they like their jobs and value the flexibility that comes with being an independent contractor.
The federal government, however, is coming to rescue them from their own choices.
The Department of Labor announced new rules this week that will limit the circumstances in which workers can be classified as independent contractors. Once implemented, those rules will force some workers currently operating as independent contractors to become full-fledged employees—thus triggering other federal mandates regarding pay and benefits.
“This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned,” acting Secretary of Labor Julie Su said in a statement.
In reality, the department is unleashing federal bureaucrats to micromanage the decisions that those workers have already made for themselves. When it is fully implemented in March, the new rule will impose a vague six-part test to determine whether a worker should count as an employee or a contractor. Determining factors whether the job is deemed to be permanent or temporary, as well as how much control bosses have over employees’ time, and how essential the employees are to the business’ overall activity.
Those determined to be employees will be forcibly reclassified even if they do not want to be.