Uber driver is an example of a job that helps make up the "gig economy." | Adobe Stock
Uber driver is an example of a job that helps make up the "gig economy." | Adobe Stock
A new rule from the U.S. Department of Labor, released earlier this month, offers clarity on what qualifies someone as an independent contractor vs. an employee under the Fair Labor Standards Act, according to the Mackinac Center for Public Policy.
The added clarification has received widespread support from Michigan's workforce of independent contractors.
"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 concern.
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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