A US Department of Labor rule proposed this week would make it more difficult for companies to treat workers as independent contractors, a change expected to shake up ride-hailing, delivery, and other industries that rely on gig workers.
The proposal would require that workers be considered employees, entitled to more benefits and legal protections than contractors when they are “economically dependent” on a company. According to Reuters, it could have wide-ranging impacts on company profits and hiring, household incomes, and worker quality of life.
The proposal would require a company to treat workers as employees when they are “economically dependent” on the company for work. The US Department of Labor said it would consider whether workers have an opportunity for profit or loss, the permanency of their jobs, and the degree of control a company exercises over a worker, among other factors.