New Labor Rule Could Shift Landscape for Gig Workers

The U.S. Department of Labor has proposed repealing a Biden-era rule that affects worker classification, favoring a standard focused on employer control. This could lower costs for industries like trucking and retail but raises concerns about workers' legal protections. Public comments are open for 60 days.

The U.S. Department of Labor announced a proposal to repeal a Biden-era rule designed to classify workers, a move long sought by business groups. The new standard would focus on employers' control over workers, potentially easing business expenses across multiple sectors.

The proposed change is seen as beneficial for industries such as trucking, retail, and app-based services including Uber and Instacart, where worker classification has been a hotly debated issue. By redefining the criteria, the rule could reduce costs for companies that rely heavily on independent contractors.

The proposal has sparked mixed reactions, especially in terms of potential impacts on worker rights. Trade groups praised the move, citing the flexibility it affords gig workers, while critics worry it will lead to a loss of essential worker protections. Public feedback is sought over a 60-day comment period starting Friday.

(With inputs from agencies.)