Freelancers file first lawsuit challenging Biden independent contractor rule
By Daniel Wiessner
(Reuters) -A group of freelance writers and editors has sued the U.S. Department of Labor, claiming the Biden administration's new rule making it more difficult for companies to treat some workers as independent contractors is illegal and should be struck down.
The four freelance workers filed the lawsuit in Georgia federal court late Tuesday, alleging that the rule unveiled last week is so vague that it violates the U.S. Constitution.
The lawsuit is the first to challenge the rule, which is scheduled to take effect March 11, but more legal challenges are expected and the U.S. Chamber of Commerce, the largest U.S. business lobby, has said it is considering suing. Republicans in Congress have also said they will move to repeal the rule through legislation.
The freelancers said in their complaint that they would seek an order temporarily blocking the rule while their lawsuit plays out.
The rule is widely expected to increase labor costs for businesses in industries that rely on contract labor or freelancers, including trucking, manufacturing, healthcare and app-based «gig» services.
The Labor Department referred a request for comment to the U.S. Department of Justice, which declined to comment.
When it issued the rule, the Labor Department said it was meant to clarify the test for determining whether workers are independent contractors or employees, who are entitled to legal protections such as a minimum wage and overtime pay.
But the freelancers in their lawsuit said the department failed to explain why it was abandoning a simpler Trump-era rule that was favored by business groups.
That 2021 rule said the key factors in determining worker classification were the degree of control a company exercises
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