Independent contractors and employees are protected in Michigan under a new law. | Pixabay
Independent contractors and employees are protected in Michigan under a new law. | Pixabay
A new rule under the Fair Labor Standards Act has been released by the U.S. Department of Labor that clarifies whether an individual is an employee or an independent contractor.
The rule, which received much support from independent workers determines if a person is an employee or independent contractor based on their own control over their profit and loss, the Mackinac Center for Public Policy reported.
"This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves," F. Vincent Vernuccio, a senior fellow at the Mackinac Center for Public Policy, said, the foundation reported. "California's experience with AB 5 demonstrates the disastrous impact that restricting independent work has on people’s businesses and livelihoods. 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."
The Mackinac Center supported the rule, which can be viewed here.
More information on the center's work on labor policy is available here.
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