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The US Department of Labor withdrew a Trump-era rule that would have made it easier for “gig economy” companies like Uber and Lyft to classify their workers as independent contractors. The reversal doesn’t change any gig workers’ current employment status, but it does signal that the Biden administration is taking a less friendly stance toward this sector of the economy.
The rule was finalized in early January, before Biden took office, and would have made it more difficult for gig workers to be reclassified as employees under federal law. Over the years, some gig workers have fought to be classified as employees so they could qualify for benefits like paid sick leave, health insurance, and minimum wage.