economy
February 26, 2026
Labor Department announces plan to roll back Biden gig worker rule
The Department of Labor proposed a rule on Tuesday that would make it easier for employers to classify workers as independent contractors not subject to minimum wage, a change from Biden rules meant to treat gig workers more like regular employees. The Labor Department said that the new rule would rescind a 2024 rule that was finalized under former President Joe Biden, and return the process to a standard that is similar to what it was back in 2021. The change is notable given the rise of gig workers like rideshare drivers in recent years.
TL;DR
- The Department of Labor has proposed a rule to make it easier for employers to classify workers as independent contractors.
- This proposed rule would rescind a 2024 rule finalized under former President Joe Biden.
- The change aims to return to a standard similar to what was in place in 2021, supporting entrepreneurial spirit and simplifying compliance.
- The rule utilizes an "economic reality" test, focusing on control and opportunity for profit or loss.
- A 60-day public comment period has begun, ending in late April.
- Republicans have previously proposed legislation to ease benefits for independent workers.
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