New U.S. Work Rule Affects Companies with Contract Workers

Learn how a new U.S. labor rule reshapes employer responsibilities, impacting industries and businesses. Effective December 26.

Oct 26, 2023 - 10:24
Oct 26, 2023 - 10:24
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New U.S. Work Rule Affects Companies with Contract Workers
New U.S. Work Rule Affects Companies with Contract Workers

A special work group in the U.S. made a new rule. This rule makes it easier for workers to talk about problems with their jobs. It also helps companies understand their responsibilities.

The rule says that if a company has control over important things like how much money workers get, when they work, and who they hire or fire, then they are responsible for following work laws. This is even if the control is not direct.

If a company is seen as responsible, they might have to be more involved in making rules at work. They might also have to talk with groups that represent workers.

This new rule starts on December 26 and is only for new cases after that date.

This is an important rule for businesses. Before, there were different rules that were confusing. Some people said they made it hard for businesses to work with other companies.

The new rule takes away a rule from before. This old rule said that a company had to have very clear and direct control over contract workers. Now, even if the control is not so clear, the company can still be responsible.

The head of the work group, Lauren McFerran, says this new rule is fair and makes sense. It means that companies who have a say in how workers do their jobs should also be fair to them.

This rule will affect industries like making things and building, where companies use other groups to find workers. It will also matter for big companies like McDonald's, even though they usually don't decide everything for the people who run their restaurants.

Some people think this new rule might make it harder for workers and companies to talk and agree on things. Others think it's a good idea because it helps protect workers who might not have a clear boss.

So, this new rule is important for workers and companies. It helps decide who is in charge and who should follow the rules about work. Starting from December 26, we will see how this new rule works.

Also Read: U.S. Commerce Department New Rules Aim to Keep Advanced Computer Chips Away from China

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