DOL nixes Trump-era opinion letter on gig worker classification

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The U.S. Department of Labor Friday tossed out an opinion letter issued during the Trump administration that had handed a big victory to “gig economy” firms by concluding that workers for an unidentified on-demand service were not the company’s employees under the federal Fair Labor Standards Act.

DOL’s Wage and Hour Division (WHD) said it had decided to withdraw the 2019 letter as part of its review of a Trump-era rule making it easier to classify workers as independent contractors rather than employees. WHD delayed the rule’s March effective date two weeks ago and called for public comments on whether it should be scrapped.

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