Long Island business and labor groups are taking different sides on proposed changes to the classification of employees and independent contractors that could upend rules for gig workers.
Last month, the U.S. Department of Labor unveiled a new proposal on how workers should be classified, saying that thousands of people have been incorrectly labeled as contractors rather than employees, potentially curtailing access to benefits and protections they rightfully deserve. The department said that misclassifying workers as independent contractors denies those workers protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over businesses, and hurts the economy.
In a letter sent this week to Secretary of Labor Marty Walsh, the Long Island Association, the Long Island African American Chamber of Commerce and the Long Island Hispanic Chamber of Commerce, expressed their opposition to the plan. The business groups say the proposed changes will create confusion among small business owners as how to classify workers and that the revisions are “overly broad” and could also result in increased litigation and costs for small businesses.
“Businesses and independent contractors alike enter consultant arrangements due to many reasons, including flexibility and the need for a specialty service for a limited period,” the letter read. “The prevalence of remote work has supported small business growth by making it easier for them to find and secure specialized services from independent contractors. While we support the protection of worker rights, we urge you to examine alternative avenues to strengthen worker protection without changing the definition of an independent contractor.”
The proposed rule, which could take months to take effect, would replace a scrapped Trump-era standard that had lowered the bar for classifying employees as contractors, workers who are not covered by federal minimum wage laws and are not entitled to benefits including health insurance and paid sick days.
Labor groups are supporting the proposed rule changes. A joint statement from John Durso, president of the Long Island Federation of Labor and Ryan Stanton, LIFL’s executive director, called the DOL’s proposal fair and just.
“Deliberate misclassification of employees as independent contractors weakens working people’s ability to negotiate, lowers labor standards for working people, and puts good employers at an unfair disadvantage,” said the statement. “This rule ensures the United States Department of Labor has the tools to protect employees against the escalating problem of misclassification, enhances worker protections, restores benefits to working people who have been subjected to corporate work arounds, and helps to make our economy more fair and equitable.”
The DOL is accepting comments on the proposed rule changes through Nov. 28.
The Associated Press contributed to this report.
David Winzelberg
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