Classification of workers as either employees or independent contractors remains a hotly contested topic, and the US Department of Labor announced a withdrawal of a new rule covering independent contractor classification. As a result, this week’s Staffing Word of the Week is “employee.”
SIA’s free, online Lexicon defines employee as:
“An individual who works directly for an organization in a job with no specific end date. Employees are mostly full-time engagements, but can be part-time as well. The term employee is generally accepted as one who receives a W-2 (or equivalent outside the United States).”
The full Lexicon is available online.
The issue of classification arose again earlier this month when the US Department of Labor announced the withdrawal of an independent contractor rule finalized in January under the Trump administration. The move is opposed by some, including the US Chamber of Commerce.
“We are disappointed to see the administration withdraw a balanced rule that was well-grounded in the law and provided certainty to workers and businesses about worker classification,” Glenn Spencer, senior VP of employment policy division at the US Chamber of Commerce, said in a statement. “We hope that the administration does not pursue new regulations that would limit earning opportunities for independent workers and small businesses. Such policies will slow economic growth, job creation, and earnings as we emerge from the pandemic.”
The Labor Department argued withdrawing the rule helps protect workers.
“By withdrawing the Independent Contractor Rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect,” Secretary of Labor Marty Walsh said at the time. “Legitimate business owners play an important role in our economy but, too often, workers lose important wage and related protections when employers misclassify them as independent contractors.”