The Biden administration announced a new rule that would reclassify millions of gig workers across the country as employees, a move that could squeeze small businesses.
The Labor Department’s proposal, released on Oct. 11, will make it more difficult for companies to label workers independent contractors, with consequences for ride and delivery services, along with other industries that rely on employees in that work category.
Share prices of the largest U.S. gig companies, such as Lyft, Uber, and Doordash, tumbled after the announcement of the proposed change.
Millions of Americans are currently working at gig jobs, a category that has become essential to many companies in the transportation, restaurant, construction, health care, and services sectors….