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You are here News Politics Biden administration blocks Trump-era rule affecting gig workers

Biden administration blocks Trump-era rule affecting gig workers

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Uber workers are employees: Biden

The Biden administration on Wednesday blocked a Trump-era rule that would have made it easier to classify gig workers who work for companies like Uber (UBER.N) and Lyft as independent contractors instead of employees, signaling a potential policy shift toward greater worker protections.

Shares of companies that employ gig labor such as Uber (UBER.N), Lyft (LYFT.O) and DoorDash (DASH.N) immediately pared gains. At 10:58 a.m. ET (1458 GMT) Uber shares traded down 1.8%, Lyft was down 4.4% and DoorDash fell 2.8%.

"By withdrawing the independent contractor rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect," Labor Secretary Marty Walsh said in a statement.

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