"Biden Administration's Contractor Rule to Disrupt Gig Economy"

The Biden administration is set to release a final rule that will make it harder for companies to classify workers as independent contractors, requiring them to be considered employees entitled to more benefits and legal protections. This rule, likely to face legal challenges, will impact a range of industries, particularly app-based services heavily reliant on contract workers. The new regulation replaces a Trump-era rule and is expected to increase labor costs for many sectors, potentially affecting nearly 40% of U.S. workers who engage in freelance work.