New administration adds uncertainty to workplace regulations

With the new presidential administration in place, employers and employees—labor and management—find themselves united in wondering about the future of workplace regulations, particularly the independent contractor rule, the joint employer situation, and the overtime regulation.

Independent contractor turmoil

The status of independent contractor (IC) rules was already complicated. The battle involving the rescission of the old Trump rule and promulgated Biden regulation lingered throughout Biden’s entire term and was just at a point where judicial rulings about the viability of the newer standard were about to be made. Post-election, the incoming Trump administration signaled an intent to end its legal defense of a Biden-era Department of Labor (DOL) rule on independent contractor status.

On the brink of oral argument before the U.S. 5th Circuit Court of Appeals, DOL lawyers successfully won a 60-day delay in the case challenging the Biden IC rule. The request was made to give the new legal team “sufficient time to familiarize themselves with these issues and determine how they wish to proceed.”

The delay doesn’t necessarily indicate the DOL will change position, although that’s the most likely outcome. The old Trump rule was widely regarded as more employer-friendly, especially with respect to the tech industry and the “gig economy,” in general, because it emphasized the degree of direct control that must be shown to justify an employee classification.

Joint employer status is a Congressional target