Biden issues labor rule that may upend millions of US contractor, 'gig' jobs

The Biden administration on Tuesday announced a new rule for classifying independent contractors in a move that may impact millions of U.S. 'gig' workers across numerous fields, including trucking, healthcare and app-based ride and delivery services such as Uber.

While a Trump administration rule made it easier for workers to be considered independent contractors, the new Labor Department rule now requires workers to be classified as employees if they are "economically dependent on an employer for work."

An estimated 73.3 million freelancer workers are employed in the United States, Newsweek reported, which is more than 55% of American workers, according to Statista. 

The rule, which gives independent contractors the same benefits and protections as regular employees, is likely to be met with legal challenges.

Independent contractors can be up to 30% cheaper than employees studies show, according to Reuters, so the new rule is expected to significantly raise labor costs for contract or freelance industries. 

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