The U.S. Department of Labor issued a final rule requiring some workers to be treated as employees rather than independent contractors, which could increase labor costs for businesses.
The rule, effective March 11, 2024, aims to prevent worker misclassification and ensure legal protections like minimum wage and overtime pay.
Business groups criticized the rule, fearing it would lead to lost opportunities for workers and costly litigation.
Worker advocates praised it for protecting workers' rights.
The impact on “gig” workers, including those in app-based services like Uber and Lyft, remains uncertain, but companies do not expect major changes to their business models.
This legislation doesn't seem to go as far as the restrictions on contract work in California, which have been scrutinized, but it could still cause issues for contract labor which is a big part of the rising side hustle side of the economy that many people depend on between jobs and for extra income.
The questions is: will this affect part-time contract work or just be limited to stopping bad actors in particular fields like construction and healthcare?
If the government goes after part-time contracting gigs, that could have a horrible impact on millions of people who are just trying to do what they can to make ends meet.