The recent NLRB decision overturning the Trump era independent contractor test holds significant implications for worker classification and labor rights. The previous test, established during the Trump administration, made it easier for companies to classify workers as independent contractors, precluding those workers from receiving certain benefits and protections afforded to workers classified as employees.
By overturning this test, the NLRB has expanded the scope of workers eligible for unionization and extended the reach of collective bargaining rights. This decision may lead to increased labor protections, such as minimum wage guarantees, workers’ compensation, and the ability to organize for better working conditions. The decision re-establishes the previous, long-standing common law test for differentiating between employees and independent contractors which had been overruled by the Trump-era NLRB.
The ruling could have far-reaching consequences for the gig economy and industries that heavily rely on independent contractors, potentially leading to greater legal recognition and rights for those workers. However, the full impact of this decision will depend on how it is implemented and interpreted moving forward.
You can review the NLRB’s press release about the decision, which includes a link to the decision itself, here: https://www.nlrb.gov/news-outreach/news-story/board-modifies-independent-contractor-standard-under-national-labor
If you or your business have any questions about how to properly classify your workers in light of this change in the law, please feel free to contact me at 859-426-2176 or nbirkenhauer@dbllaw.com.
