US Labor Department proposes rules to reclassify contractors as employees
Earlier in September this year, US President Joe Biden discussed a tentative railway labour agreement with Secretary of Labor Marty Walsh.
By ET Spotlight Special |
Agencies
The US Labor Department has proposed a rule that may affect the gig economy that would reclassify some independent contractors as business workers. The much-awaited regulation targets businesses that, according to the US President Joe Biden administration, 'misclassify' their personnel as contractors. Since they would no longer be contractors, these workers would now be subject to the minimum wage and overtime regulations.
The Biden administration has come under pressure from labour unions to target sectors that rely on contractors, such as ride-sharing firms like Uber and Lyft.
The basis for the negotiations is that these workers are missing out on essential benefits and will have difficulty organising because they are considered contractors.
According to a report released by the Labor Department on Tuesday, misclassification affects many sectors, including construction, home care, janitorial services, delivery, and trucking.
China is global hotspot for goods made by forced, child labour: Report
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China is the leading global hotspot for the goods' manufacturing by forced labour and abusive child labour, the US Department of Labor said in a report on Wednesday.
China is the leading global hotspot for the goods' manufacturing by forced labour and abusive child labour, the US Department of Labor said in a report on Wednesday.
"Today's list illustrates China's disturbing role - the world's second-largest economy - in sponsoring these exploitative practices," US Labor Secretary Eugene Scalia (in pic) said in a statement. "Forced labour and abusive child labour are dehumanizing, ruining lives and families," he added.
"Today's list illustrates China's disturbing role - the world's second-largest economy - in sponsoring these exploitative practices," US Labor Secretary Eugene Scalia (in pic) said in a statement. "F..
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The list for these goods is part of a broader US government's effort to address forced labour in China's Xinjiang Uyghur Autonomous Region, where more than one million Uyghurs and other ethnic and religious minorities have been detained, the US Labor Department said.
The list for these goods is part of a broader US government's effort to address forced labour in China's Xinjiang Uyghur Autonomous Region, where more than one million Uyghurs and other ethnic and re..
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"Estimates range from at least 100,000 to possibly hundreds of thousands of Uyghurs and other ethnic and religious minorities in China who may be working in conditions of forced labour following detention in Chinese Communist Party re-education camps," the release further stated.
"Estimates range from at least 100,000 to possibly hundreds of thousands of Uyghurs and other ethnic and religious minorities in China who may be working in conditions of forced labour following dete..
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The Labor Department has in the past highlighted its growing concern over Uyghurs' treatment in Xinjiang. Last month, the US Department of Homeland Security had said that it will block the import of goods made in Xinjiang to combat alleged forced labour practices.
The Labor Department has in the past highlighted its growing concern over Uyghurs' treatment in Xinjiang. Last month, the US Department of Homeland Security had said that it will block the import of ..
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Human rights groups say Chinese authorities have detained more than a million people -- from mostly Muslim ethnic groups that include Uighurs, Kazakhs, and Kyrgyz -- in a vast network of detention centres as part of an assimilation campaign. Beijing has repeatedly denied the charges, saying the camps were built for vocational and Chinese language training.
Human rights groups say Chinese authorities have detained more than a million people -- from mostly Muslim ethnic groups that include Uighurs, Kazakhs, and Kyrgyz -- in a vast network of detention ce..
The government claimed that because of the prevalent problem, it is challenging for certain companies to compete with those that mistakenly categorise their employees as contractors.
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The Trump administration's guidelines that made it simpler for businesses to identify employees as contractors will be replaced by the Biden administration rule. Business organisations that lobbied for the Trump administration rule vehemently oppose it.
FAQs:
How will the change in labour laws impact labour expenses? According to experts, if gig businesses were forced to reclassify contractors as employees, labour expenses might rise by as much as 30 per cent.
What was the impact on stock prices of the contractor organisations post the proposal of changes in labour laws? Following the revelation, the stock prices of Uber and Lyft both dropped by almost 14 per cent.