Child care is an example of a job where a worker could be considered either an employee or an independent contractor, depending on the situation. | stock photo
Child care is an example of a job where a worker could be considered either an employee or an independent contractor, depending on the situation. | stock photo
The U.S. Department of Labor released a new rule earlier this month that offers clarity on what qualifies a worker as an independent contractor vs. an employee under the Fair Labor Standards Act, according to the Mackinac Center for Public Policy.
The added clarification received support from the independent Michigan workforce.
"This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves," said F. Vincent Vernuccio, senior fellow at the Mackinac Center, according to the Center's website. "California's experience with AB (Assembly Bill) 5 demonstrates the disastrous impact that restricting independent work has on people's businesses and livelihoods."
Vernuccio said that direct attacks on the gig economy and independent contractors are a growing issue.
The rule takes into consideration the control an independent contractor has over their work, as well as profit and loss, as the core factors of deciding whether someone is working for themselves or as an employee.
"This rule will protect the firmly rooted American tradition of being your own boss," Vernuccio told the Mackinac Center.
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