New Labor Department rule would classify more workers in 'gig economy' jobs as employees

The Biden administration implemented a new rule on Tuesday that will tighten standards for when “gig economy” workers at companies like Uber, Lyft, and Grubhub must be considered employees who are entitled to labor protections rather than independent contractors.

The Labor Department finalized a new rule that will replace a Trump-era standard that narrowed the criteria for classifying workers as employees under the Fair Labor Standards Act.