Macomb Today

Michigan residents who work as independent contractors have a bit more help on their side, thanks to a new rule put in place by the U.S. Department of Labor on Jan. 6. 

That new rule is designed to protect independent contractors and clarify how business owners should determine whether an individual is an independent contractor or an employee under the Fair Labor Standards Act.

Two indicators of whether an individual is an independent contractor or an employee are the questions of ability to take part in profit or loss, and whether the individual has control over his or her own work.

The Mackinac Center for Public Policy was one of many groups and individuals that submitted comments on the new rule, and F. Vincent Vernuccio, senior fellow at the center, issued a statement this week.

“This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves. California's experience with AB 5 demonstrates the disastrous impact that restricting independent work has on people’s businesses and livelihoods,” he said. “Direct attacks on independent contractors and the gig economy as a whole are growing. This rule will protect the firmly rooted American tradition of being your own boss.”