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Labor Department withdrawing Independent Contractor Rule

The US Department of Labor today announced plans to withdraw the Independent Contractor Rule finalized in January. The Washington Post reported [1] the rule limited the ability of workers to argue they were misclassified as independent contractors; the rule had been introduced under the Trump administration.

“By withdrawing the Independent Contractor Rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect,” said U.S. Secretary of Labor Marty Walsh. “Legitimate business owners play an important role in our economy but, too often, workers lose important wage and related protections when employers misclassify them as independent contractors.”

Several reasons for withdrawing the rule were cited by the department:

The withdrawal will be published on Thursday and be available here [2].