What is Biden's proposed gig worker rule and how it affects you

What is Biden's proposed gig worker rule and how it affects you

A new proposal aims to rescind a Trump-era rule to make it difficult for companies to classify workers as independent contractors.

With the new proposal, the Labor Department aims to curb the “misclassification” of gig workers.

This development could have major consequences for the gig economy.

Companies were required to provide benefits and legal protections to employees but not contractors.

The proposal requires companies to consider workers as employees, entitling them to more benefits and legal protections.

The labor department will be taking public comment on the rule for 45 days, until November, 28, 2022.

After the news, gig company stocks were heavily impacted, with Uber, Lyft and DoorDash falling at least 10%.

The number of independent workers in the US increased by 34% from 2020 to 2021.

This added over 13 million new workers to the gig economy.

At least 59 million American adults worked in the gig economy during 2020, making up about 36% of the US workforce.