Muskegon Sun

The U.S. Department of Labor announced a new rule to protect independent contractors and clarify how to classify independent contractors or employees under the Fair Labor Standards Act.

“This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves. California's experience with AB 5 demonstrates the disastrous impact that restricting independent work has on people’s businesses and livelihoods,” said F. Vincent Vernuccio, senior fellow at the Mackinac Center for Public Policy. “Direct attacks on independent contractors and the gig economy as a whole are growing. This rule will protect the firmly rooted American tradition of being your own boss.”

Core factors to determining whether an individual is an employee or working for themselves include the ability for profit or loss, and whether or not they have control over their own work. The Mackinac Center was one of many organizations and individuals that submitted a comment in support of the rule.