Connect with us

Hi, what are you looking for?

THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Legal Assistance

Legal Assistance

Trade Groups Object: Lawsuit Filed Against Biden’s Regulation on ‘Gig’ Work and Contracting

Lawsuit Filed Against Biden's Regulation on 'Gig' Work
Lawsuit Filed Against Biden's Regulation on 'Gig' Work

Listen to the article now

Lawsuit Filed Against Biden’s Regulation on ‘Gig’ Work 

On March 5, major U.S. business groups, including the U.S. Chamber of Commerce, filed a lawsuit challenging a Biden administration rule that is set to make it more challenging for companies to classify workers as independent contractors rather than employees. This rule, scheduled to take effect on March 11, has broad implications for various industries, particularly those reliant on gig workers for services. The lawsuit argues that the U.S. Department of Labor rule violates federal wage law by adopting an excessively broad definition of who qualifies as an employee.

Under the rule, employees are entitled to legal protections, such as the minimum wage and overtime pay, that are not afforded to contractors. The legal action claims that the Labor Department failed to justify its reversal of a Trump administration rule that was favored by trade groups. At least four other challenges to the rule are pending, involving freelance writers, trade groups, and a trucking company that treats drivers as independent contractors.

The lawsuit represents an amended complaint in a case initiated in 2021 when the department first attempted to repeal the Trump-era rule. A judge blocked the repeal, citing the agency’s inadequate explanation for the decision. The Labor Department has asserted that the rule is designed to clarify worker classification standards and target industries where misclassification is prevalent, such as construction, healthcare, retail sales, and security and janitorial services.

In addition to the legal challenges, Republicans in Congress are actively working to repeal the rule. Senator Bill Cassidy from Louisiana plans to introduce a resolution under the Congressional Review Act to nullify the rule. The ongoing legal and legislative efforts underscore the contentious nature of the rule, with businesses expressing concerns about the potential impact on their operational models and labor practices.


Comment Template

You May Also Like


Uber Settles Lawsuit with Australian Taxi Drivers, Agrees to Pay $178 Million, Law Firm Reports Uber has reached a settlement in Australia, agreeing to...

Legal Assistance

Elon Musk Faces Lawsuit from Ex-Twitter Execs  Elon Musk is facing a lawsuit from four former Twitter executives, including former CEO Parag Agrawal, who...


Elon Musk Accuses OpenAI Elon Musk, co-founder of OpenAI, has recently taken legal action against the artificial intelligence (AI) research lab, alleging a deviation...


UBS (UBSG.S) was found guilty of promoting illicit financial services and money laundering in France, which resulted in a punishment of 1.8 billion euros...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.