Business Coalition Targets DOL’s Gig Worker Rule Through Unorthodox Legal Tactic

A coalition of business groups, which represent a range of industries and include gig economy giants such as Uber Technologies Inc. and DoorDash Inc., have adopted an unorthodox approach to expedite legal action against the US Department of Labor’s (DOL) forthcoming independent contractor rule, set to go into operation in March.

In lieu of filing a new lawsuit against the worker classification rule unveiled on January 9, the business groups decided to revive litigation related to a separate Biden administration independent contractor regulation rolled out in 2021, via a motion submitted on January 11.

The strategic move could potentially land their proceedings in front of a skeptic judge, which would presumably be beneficial to the business groups. This unusual step was taken amidst the DOL’s contention that the issue is now moot with the forthcoming new rule.

Although the worker classification is a hot topic given the growth of gig economy companies, this story is still in its developing stages. Be sure to stay updated with the full details and legal analysis on Bloomberg Law.