Today Labor Secretary Alexander Acosta reportedly rescinded Obama-era rules on joint employer and independent contractor liability, according to a Bloomberg BNA reporter. CEI labor policy expert Trey Kovacs praised the move:
Labor Secretary Acosta’s decision to rescind regulator guidance on independent contractor and joint employer rules is a positive sign this administration will reverse federal rules that needlessly hamstring worker and employer flexibility in the modern workplace.
The labor rules at issue amounted to informal regulatory ‘dark matter’ that made it harder for people who want to be in business for themselves and punished large companies for contracting with smaller ones.
Government should not stop people from choosing work that fits their needs or make business-to-business relationships a regulatory liability. Today’s move by the Labor Department to remove barriers to economic opportunity is welcome news for job creators and workers.