Childcare is an example of a job where a worker could be considered either an employee or an independent contractor, depending on the situation. | Pixabay
Childcare is an example of a job where a worker could be considered either an employee or an independent contractor, depending on the situation. | Pixabay
A new rule under the Fair Labor Standards Act has been recently released by the U.S. Department of Labor, clarifying whether a worker is an employee or an independent contractor.
The rule, which has received positive support from independent workers, determines whether a person is an employee or independent contractor based on their own control over potential profit and loss, according to the Mackinac Center for Public Policy.
"This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves," said F. Vincent Vernuccio, a senior fellow at the Mackinac Center for Public Policy, according to a statement from the Mackinac Center. "California's experience with AB (Assembly Bill) 5 demonstrates the disastrous impact that restricting independent work has on people’s businesses and livelihoods. Direct attacks on independent contractors and the gig economy as a whole are growing. This rule will protect the firmly rooted American tradition of being your own boss."
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