A coalition of United States businesses is aiming to do away with some of the Biden administration’s biggest labor legislation.
Businesses that employ ride-hailing drivers, home health aides, janitors, truckers, and other professionals filed a legal challenge on Tuesday challenging a provision from the Biden administration that guides the categorization of workers. The companies behind the challenge have long argued that categorizing their contractors as employees would incur steep costs they can’t afford, ruining the purpose of the businesses.
The challenge, filed just before the administration’s new rules are scheduled to take effect next week, says the Labor Department threatens to “irreparably harm not just companies employing independent contractors nationwide, but the workers themselves,” the Washington Post reported.
The main group behind the challenge is the Coalition for Workforce Innovation, which sports big-name members such as Uber and Lyft. In the same camp are the U.S. Chamber of Commerce, which includes Caterpillar, FedEx, Facebook, and Hilton; the National Retail Federation; the National Federation of Independent Businesses; and the American Trucking Associations.
Marc Freedman, vice president of workplace policy at the U.S. Chamber of Commerce, warned that the new rules from the Biden administration could end the use of contractors altogether.
“This regulation will make it very difficult, if not impossible, for employers to maintain the legitimate use of independent contractors,” he said.
On the other hand, labor activists argue that the classification of contractors strips them of vital benefits.
“For decades now, we have seen employers misclassify people as independent contractors as a way to avoid complying with minimum wage and overtime pay, and to pass more of the risks and costs to workers,” Laura Padin, director of work structures at the National Employment Law Project, said.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
While the national fight over the gig economy rages, some local jurisdictions have taken it upon themselves to enact laws supporting contractors, often to a negative result.
A Seattle law meant to benefit contractors ended up harming them instead, with rising prices sending orders plummeting.
