Trump Administration Scraps Controversial Worker Classification Rule

The Trump administration aims to repeal a rule complicating the classification of workers as employees. This move favors industries such as trucking and retail sales, enabling them to continue employing independent contractors, which are less costly than employees. The decision highlights ongoing debates around worker classification.

The Trump administration announced plans on Thursday to repeal a contentious rule affecting worker classification. This rule, opposed by business groups, made it more difficult to classify workers as independent contractors instead of employees, thus increasing costs for companies.

Industries such as trucking, retail sales, and app-based services like Uber and Instacart stand to benefit from the proposed changes. Independent contractors do not receive the same benefits as employees, allowing businesses to save up to 30% due to reduced obligations and protections.

The Biden-era rule faced challenges in multiple lawsuits but was not widely enforced before signals of its repeal. The repeal proposal will be open for public comment for 60 days, anticipating debates on employment classifications.

(With inputs from agencies.)