05/06/2021

Biden Administration Blocks Trump-era Rule Affecting Gig Workers

The decision aims to stop the erosion of worker protections

The Biden administration on Wednesday blocked a Trump-era rule that would have made it easier to classify gig workers who work for companies like Uber and Lyft as independent contractors instead of employees, signaling a potential policy shift toward greater worker protections.

Shares of companies that employ gig labor such as Uber, Lyft and Dash immediately pared gains. At 2.15 p.m. ET, Uber shares traded down 3.2 percent, Lyft was down 5.8 percent and DoorDash fell 5 percent.

"By withdrawing the independent contractor rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect," said Labor Secretary Marty Walsh in a statement.

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