New Rule Tightens Working Classification Standards; Uber, Lyft Says Drivers Won’t Be Affected

(Associated Press) – The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as independent contractors.

The labor department rule going into effect Tuesday replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors.

Such workers neither receive federal minimum wage protections nor qualify for employee benefits, such as health coverage and paid sick days.

Major business groups have opposed the new rule, saying could threaten the flexibility of many workers who want to be contractors.

However, major app-based platforms such as Uber and Lyft have expressed confidence that their drivers are properly classified as gig workers under the new rule.