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Los Angeles Law Blog

By John Kristensen of Kristensen, LLP posted in News on Monday, May 17, 2021.
Biden’s Labor Department: U-Turn on Trump’s Anti-FLSA Rule

In his final days in office, former President Donald Trump’s administration had implemented an independent contractor rule that would make it easier for businesses to classify employees as independent contractors instead of employees under the FLSA, or Fair Labor Standards Act.


As expected, President Joe Biden’s administration rescinded the Trump administration’s last-minute attempt to defenestrate employees’ protections. The gig industry and the thousands of workers in it are under constant attack by businesses, which rely on the talent and skills of these workers, trying to erode workers’ rights and protections under the FLSA by misclassifying employees as independent contractors. The Trump administration’s rule would have come as a loss to employees, who would lose out on the right to be paid a minimum wage and overtime pay.


Kristensen LLP champions the Biden administration’s decision and stands by the thousands and thousands of employees around the nation who have been historically taken advantage of by businesses. Kristensen LLP has successfully litigated numerous FLSA cases throughout the United States. If you believe that you or someone you know has been or is being improperly classified as an independent contractor, please contact us for a free confidential consultation.


The announcement on the rule reversal by the Labor Department, which came on Wednesday, May 5, 2021, hurt the stocks of companies like Uber Technologies Inc. and Lyft Inc., which rely on the employment of gig labor. In an article posted by Reuters on NBC News online (which you may find here), Marty Walsh, Secretary of the Labor Department, says, “too often, workers lose important wage and related protections when employees misclassify them as independent contractors.” 


Secretary Walsh goes on to say that, “the independent contractor rule was in tension with the FLSA’s text and purpose.” The rule would have gone into effect in March of this year, but the withdrawal became effective the day after the announcement. 


Labor disputes both generally and that specifically concern the FLSA are not a new topic for us. Read up on our prior blogs which feature this topic, from how to know if you qualify for a California labor law violation (here) to whether or not gentleman’s club dancers should be classified as employees (here) – hint, they should and they are starting to be recognized as such. 


As legal representation for so many victims of labor violations around the country, advocate for employee rights, and supporter of the FLSA, the u-turn on labor laws by Biden’s Labor Department is refreshing. Again, if you or someone you know believes they are or have been misclassified as an independent contractor, contact us today for a free confidential consultation. Kristensen LLP will fight for your rights and help you get what you deserve under our nation’s labor laws.