Burt Garland discusses the Department of Labor's final rule on independent contractors, mainly focusing on changes affecting businesses. Effective March 11, 2020, the new rule replaces the prior economic realities test with a six-factor test called the "totality of the circumstances analysis." The factors include the worker's opportunity for profit or loss, relative investment, permanency of the relationship, nature and degree of control, an integral part of the employer's business, and specialized skills.
The conversation highlights the potential impact on the gig economy, especially for companies like Uber and Lyft. Concerns about the difficulty of classifying gig workers as independent contractors under the new rule are raised. The discussion also touches on challenges in trucking, construction, healthcare, education, and other industries.
Burt emphasizes the need for businesses to conduct audits, assess risks, update policies, and work with legal counsel to navigate the changes. The discussion briefly shifts to the 2022 Pump Act, specifically addressing industry-specific guidance for compliance in the restaurant and retail sectors. As the Pump Act mandates, the hosts stress the importance of providing appropriate spaces for nursing mothers. The section ends with a note about ongoing uncertainties, especially considering the potential for future changes in administrations and regulations.
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