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Biden administration quashes Trump text on self-employed workers

2021-05-06T14:42:55.073Z

The Biden administration on Wednesday overturned a regulation adopted in early January by the Trump administration, which made it more difficult for ...



The Biden administration on Wednesday overturned a regulation adopted in early January by the Trump administration that made it more difficult for Uber drivers, DoorDash delivery men and other workers in the "gig economy", or

"odd job"

economy

, to claim a employee status.

Read also: To avoid wage employment, Uber offers a hybrid status to its drivers

The US Department of Labor announced in a statement the withdrawal of this regulation effective May 6,

"in order to maintain workers' rights to minimum wages and overtime protections

.

"

US law provides for a minimum wage of $ 7.25 per hour and overtime beyond 40 hours of work per week.

The “Independent Contractor Rule” was adopted on January 6 by the Trump administration, less than two weeks before he left the White House.

It aimed to protect the tech giants, such as Uber, Lyft or DoorDash, in the face of multiple lawsuits by independent workers who claim employee status.

"Preserve the essential rights of workers"

By withdrawing this legislation, the Department of Labor explains that it wants to help

"preserve the essential rights of workers and put an end to the erosion of workers' protections that would have taken place if the regulations had come into force,"

said the US secretary. at Work, Marty Walsh, quoted in the press release.

"We remain committed to ensuring that employees are recognized clearly and correctly when they are, in fact, employees, so that they receive the protections provided,"

he added.

A week ago, Marty Walsh said he was in favor of the drivers and deliverers of Uber, Lyft, Doordash, etc., obtaining employee status in the United States.

The independent status of these workers is being questioned all over the world.

In the United States, California passed a law in 2019, which came into force in 2020, requiring companies in the sector to consider their self-employed workers as employees and to grant them social benefits accordingly.

But Uber had countered it by submitting to a referendum its own text, 58% approved by Californians in November, which enshrines the status of self-employed and flexible working hours, and grants them certain compensations (guaranteed minimum income, contribution to a health insurance and other insurance).

Source: lefigaro

All business articles on 2021-05-06

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