Uber and Lyft are examples of jobs that make up the "gig economy." | Stock Photo
Uber and Lyft are examples of jobs that make up the "gig economy." | Stock Photo
A new rule released by the U.S. Department of Labor earlier this month offers clarity on what qualifies someone as an independent contractor vs. an employee under the Fair Labor Standards Act, according to a statement from the Mackinac Center for Public Policy.
The added clarification received widespread support from independent workers in Michigan.
"This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves," said F. Vincent Vernuccio, senior fellow at the Mackinac Center, according to the Center's statement. "California's experience with AB (Assembly Bill) 5 demonstrates the disastrous impact that restricting independent work has on people's businesses and livelihoods."
Vernuccio said that direct attacks on the gig economy and independent contractors are a growing issue.
The rule takes into consideration the control an independent contractor has over their work, as well as profits and losses, as the core factors of whether someone is working for themselves or is an employee.
"This rule will protect the firmly rooted American tradition of being your own boss," Vernuccio said, according to the Mackinac Center's statement.
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