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NJ Voices Support for U S Labor Department s Plans to Withdraw Two Harmful Trump-Era Policies

Attorney General Gurbir S. Grewal has joined Attorneys General from across the nation in supporting two proposed actions by the U.S. Department of Labor (DOL) that would protect workers by eliminating a pair of Trump-era rules that, if allowed to remain in place, would make it easier for employers to deny workers protections and benefits.  In comments submitted on Monday to DOL Secretary Martin J. Walsh, Attorney General Grewal joined 20 other Attorneys General in endorsing the DOL’s proposed withdrawal of the Independent Contractor Rule promulgated by the Trump Administration in January 2021. If allowed to take effect, the rule would make it easier for employers to misclassify their employees as “independent contractors,” thereby avoiding responsibility for meeting certain wage-and-hour requirements, and providing such worker benefits as employer-provided health insurance and paid sick leave.

New U S rule could boost gig economy companies while costing American workers billions

New U.S. rule could boost ‘gig economy’ companies while costing American workers billions The U.S. Department of Labor finalized a rule Wednesday that could be a boon to app-based gig companies while potentially costing American workers billions of dollars in lost wages and benefits. The rule establishes a test for determining independent contractor status under the Federal Labor Standards Act, giving more weight to two of five factors, which critics say are favorable to gig companies such as Uber Technologies Inc. UBER and Lyft Inc. LYFT: “the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit or loss based on initiative and/or investment.” The other factors are skill, permanence of the working relationship and whether the work is part of an integrated unit of production.

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