A change in the federal regulations could have a massive impact on the people who drive for Uber or Lyft, including the thousands of Uber and Lyft drivers in Illinois. The removal of a rule released under the Trump Administration means that it will now be harder for companies like Uber and Lyft to classify their drivers as independent contractors (as opposed to employees,) which means it will be relatively easier for those drivers to obtain benefits like workers’ compensation. If you were hurt while driving for Uber or Lyft, be sure to act without delay in contacting a knowledgeable Chicago workers’ compensation lawyer.
Back in early January, the U.S. Department of Labor released a new rule that clarified who did – and did not – qualify as employees as opposed to independent contractors under the federal Fair Labor Standards Act (FLSA). Under the standard created by that rule, it was relatively easier for employers to classify workers as independent contractors and not run afoul of the law and federal regulators.
Under the Biden Administration, that rule is no more. In withdrawing the rule effective May 6, the current Labor Department said that the previous rule did not properly reflect the text of the FLSA and relevant judicial rulings.