The U.S. Department of Labor introduced a final rule in January that will make it more diffi- cult for companies like Uber and Lyft to classify workers as independent contractors under the Fair Labor Standards Act. The rule will require that workers be considered employees rather than contractors when they are “economically depen- dent” on a company.
Classification as employees, as opposed to contractors, wins meaningful benefits for work- ers, including minimum wage, overtime pay, pro- tection for union organizing activity, and more.
This rule, scheduled to take effect on March 11, is being closely monitored by major gig econ- omy players such as Uber, Lyft, and Doordash, as well as by employers in construction, trucking, and healthcare sectors. The rule is already facing legal challenges, including opposition from congress and from the U.S. Chamber of Commerce.