The Department of Labors new worker classification rule has taken effect, reclassifying millions of gig workers as employees entitled to minimum wage, overtime pay, and benefits.
What Changed
The new rule uses a six-factor economic reality test to determine whether workers are independent contractors or employees. Key factors include the degree of control, opportunity for profit/loss, and permanence of the relationship.
Industries Most Affected
- Ride-sharing: Uber, Lyft drivers may become employees
- Food delivery: DoorDash, Instacart shoppers affected
- Freelance marketplaces: Upwork, Fiverr facing scrutiny
- Construction: Subcontractor arrangements under review
Company Response
Uber and DoorDash have filed legal challenges, arguing the rule will destroy the flexible work model that drivers prefer. Both companies reported stock drops of 12-18% following the announcement.
Meanwhile, labor unions are celebrating the rule as a victory for worker protections in the modern economy.
