A rule that would make it more challenging for businesses to treat employees as independent contractors was proposed by the U.S. Department of Labor on Tuesday.
This change is anticipated to upend the business models of the ridesharing, delivery, and other sectors that depend on gig workers.
The idea would mandate that when workers are “economically dependent” on a corporation, they must be treated as employees, who are entitled to more benefits and legal protections than contractors.
The Labor Department said it will assess workers’ possibility for profit or loss, the permanency of their occupations, and the degree of control a firm maintains over a worker, among other things.
All in all, it’s good news for those who are currently doing such types of jobs.
On the other hand, it’s disturbing for some businesses as mentioned above.