Biden Reversing Trump Labor Rule To Prevent Misuse Of 'Independent Contractor' Status

The Biden administration is releasing a new labor regulation that would make it harder for employers to skirt minimum wage and overtime obligations by labeling workers as “independent contractors.”

The final rule, announced Tuesday and slated to go into effect March 11, seeks to crack down on employee misclassification. Administration officials say that, though many workers may be legitimately independent, others are merely categorized that way as a cost-cutting maneuver by their employers.

It is likely the new rule will be challenged in court by business groups. But Julie Su, the...