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The "workers of the big economy" are entrepreneurs and not employees, said Monday the Ministry of Labor in a letter to a lawyer for visiting one of these sites.
The letter reinforces the position of online businesses – "virtual market economy" websites connecting customers with drivers, cleaners, delivery men or other suppliers – who claim to not be traditional employers and are not therefore not bound by the usual legal obligations between management and employees. .
"Based on the facts you provide in your letter, it appears that the service providers who use your client's virtual market are independent contractors and your client provides a referral service. does not receive services from service providers, but it empowers service providers to provide services to end-market consumers, "says the department's letter.
The conclusion is important because most independent contractors are exempt from the Fair Labor Standards Act, which imposes a minimum wage, overtime pay and other requirements.
The letter does not specifically indicate which companies the determination could apply to, but the description covers those that "provide an SEO system that connects service providers to consumers", such as carpooling companies such as as Lyft or a reference website like Angie's List.
The letter came from the Wages and Hours Division of the department, in response to a request from a lawyer who was looking online for clarification on the law. The letter is not a law, nor even an official regulation, but it does indicate how the department intends to interpret existing rules and regulations. It has been made public to clarify the situation of similar companies. The name of the company in question was taken from the letter, the ministry's current practice to make it public.
The agency said that it had based its decision on a long-standing balancing test to determine if a company was an employer, including its degree of control over what the person does and how she was paid, among other factors. "Today, the US Department of Labor provides additional insight into the link between current labor law and labor market innovations," said Keith Sonderling, Acting Director of the Wages and Benefits Division. hours of the department.
The liberal draft of national legislation on employment criticized the regulation. "The DOL's letter of opinion attempts to allow an unnamed company #GigEconomy to underpay and overburden its workers by classifying them as independent contractors." But if workers have all the restrictions imposed to their employees, they should benefit from the protections " he tweeted.
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