U.S. President Joe Biden's Labor Department on Wednesday rescinded a Trump-era rule that would have made it easier for U.S. businesses to classify workers as independent contractors instead of employees.
Fred Katayama reports.
Biden rescinds Trump-era rule on gig workers
The Labor Department under the Biden administration blocked a Trump-era rule Wednesday that would’ve made it easier for companies to classify workers as independent contractors instead of employees under federal law.
The move comes one week after Labor Secretary Marty Walsh told Reuters that many gig workers should be classified as “employees” who deserve company benefits.
His boss, President Biden, is a big supporter of labor unions.
Gig workers are independent contractors who perform on-demand services, such as childcare providers and drivers working for companies like Uber and DoorDash.
The rule under the Trump administration would have made it harder for workers to earn a minimum wage and get paid overtime.
That rule was supposed to take effect last month but did not because the Biden Administration was reviewing it.
The withdrawal takes effect Thursday.
On Wall Street Wednesday, shares of Uber, Lyft and DoorDash fell more than 2% in early trading.