On Tuesday, the U.S. Department of Labor (DOL) proposed a rule that would make it more difficult for companies to classify workers as independent contractors. Such a change could potentially upend the gig economy, including ride-sharing and delivery companies, and industries that rely primarily on contractor labor, such as the construction and health care industries. The DOL has stated that primary goal of the proposal is to protect workers from being classified improperly while providing consistency for businesses that wish to employ independent contractors. As a result, worker advocates have claimed that millions of workers are misclassified as independent contractors. It is anticipated that if the proposed rule holds, the gig economy will be significantly impacted as ride-sharing and other gig economy players depend on this contractor business model.

Source: New York Times October 14, 2022 04:07 UTC