NASHVILLE, Tenn. (WTVF) — The Beacon Center, the non-profit think-tank has filed a federal lawsuit against the U.S. Department of Labor.
The Fair Labor Standards Act, which provides employees with benefits such as minimum wage, certain distinction do not apply to independent contractors, so from 1938 to 2021, companies relied on court decisions to determine whether a worker was an employee or independent contractor.
In 2024, the U.S. Department of Labor published a final rule revising these guidelines.
The lawsuit claims that that the department's "independent contractor rule" threatens the livelihoods of freelancers. The rule "replaces a straightforward two-factor test with a vague six-factor test for determining whether a worker is a freelancer or an employee, will force freelancers into employment relationships that they neither want nor need."
"Tennesseeans should be able to choose how they earn a living without unnecessary and unproductive government interference," said Beacon Director of Legal Affairs Wen Fa. "The federal government is wrong to assume that everyone wants to be an employee. Poll after poll shows that most freelancers prefer to earn a living through freelance work. That's why we're helping Nashville-based freelancers fight back against the federal government's attempt to destroy their right to freelance."
The Center is representing Tennessee freelance journalists Margaret Littman and Jennifer Chesak in the lawsuit.
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