Biden administration to unveil new contractor rule

The Biden administration has said the Trump-era rule violated US wage laws and was out of step with decades of federal court decisions. — Reuters

WASHINGTON: The administration of US President Joe Biden will release a final rule that will make it more difficult for companies to treat workers as independent contractors rather than employees that typically cost a company more, says an administration official.

The US Department of Labour rule, which was first proposed in 2022 and is likely to face legal challenges, will require that workers be considered employees entitled to more benefits and legal protections than contractors when they are “economically dependent” on a company.