Biden’s New Labor Law Could Make Side Hustles Illegal in the U.S.

Set to take effect on March 11th, these regulations redefine the classification of workers, particularly in the gig economy, marking a significant departure from the independent contractor model.

One interesting and costly ramification of this rule, whether or not it does ultimately take effect, is that it has sent companies who rely on gig workers scrambling to perform internal audits and ensure full compliance ahead of schedule. See the full video here.

This shift, aimed at fortifying worker protections and benefits, has generated substantial concerns regarding its potential ramifications for businesses and the broader economy. The reform, slated to go into effect on March 11, raises questions about its rapid implementation and the readiness of both employers and workers for such a seismic shift.

Under the Fair Labor Standards Act, employers are mandated to provide minimum wage, overtime pay, and various statutory benefits to classified employees. The failure to adhere to these guidelines may expose businesses to significant damages and penalties, even in cases of unintentional misclassification.

A group of freelance writers and editors has filed a lawsuit against the U.S. Department of Labor, contending that the new rule, unveiled just last week, is so vague that it violates the U.S. Constitution.

In their lawsuit, the freelancers stated that “Businesses are given no useful guidance on the scope of the statute and cannot structure their conduct to comply with its demands,” which they believe may cause businesses to drop gig workers simply out of fear and uncertainty.

As noted, companies, both large and small, are now scrambling to conduct internal audits to ensure compliance and mitigate the risk of penalties from the IRS. The urgency of this audit emphasizes the challenges businesses face in adapting to the swift and comprehensive changes imposed by the new rules.

The financial strain induced by this shift may lead to layoffs, outsourcing, and an increased reliance on automation. This is compounded by the conclusion of the Biden Administration’s relief programs for small businesses, painting a somber picture for the economic landscape.

The already precarious state of household debt, auto loan debt, and credit card debt amplifies the looming threat of further economic hardship. There is an obvious need for proactive measures and strategic financial planning in the face of these potential challenges.

Prioritizing debt reduction, engaging in comprehensive financial planning, and positioning oneself to leverage what he anticipates as the greatest wealth transfer in American history are key recommendations. Seeking assistance in addressing credit issues and preparing for the anticipated economic challenges are crucial steps for individuals navigating this transformative period.

In comments on Williams’ video, Individuals express concerns about the legality of tax collection and the perceived infringement on their right to work and earn as much as they desire. The potential consequences, including a shift of teenage starter jobs to illegal adults and the emergence of a black market labor force, are highlighted by commenters.

The Biden Administration’s decision is groundbreaking, marking a pivotal moment in labor policy that sets the stage for a new era of economic uncertainty in America. Williams concludes his analysis by urging viewers to stay informed, take proactive steps to secure their financial futures, and brace for the turbulent times ahead.