California Labor Federation Commends Biden Administration for New Worker Classification Rule to Combat Misclassification

SACRAMENTO – (January 9, 2024)

Today, Lorena Gonzalez, head of the California Labor Federation, issued a statement in response to the U.S. Department of Labor’s announcement of a final rule to help combat misclassification, and ensure employers and workers better understand when a worker qualifies as an employee and when they may be considered an independent contractor under the Fair Labor Standards Act.

“For too long, working people have suffered wage and benefit theft by big business misclassifying them as independent contractors when they are clearly employees. Today’s Department of Labor final rule to strengthen protections against corporate misclassification not only empower workers, but also eliminates the unfair competition for responsible businesses that follow the law.

We commend Acting Secretary Julie Su for taking this important step. California already has one of the strongest laws in the nation, so it’s time to aggressively enforce AB 5 to protect workers and law-abiding businesses. 

We urge all state and local enforcement agencies to prioritize misclassification, including getting workers the wages that were stolen and collecting all the unpaid taxes these companies owe due to this illegal business practice. In tough budget times, it is especially important that we hold corporations that cheat on their wages and taxes accountable.”