New rule tightens worker classification standards; Uber, Lyft say their drivers won’t be affected

By ALEXANDRA OLSON and DAVID HAMILTON
AP Business Writers

NEW YORK (AP) — The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as “independent contractors,” a step that could bolster both legal protections and compensation for millions in the U.S. workforce. Major app-based platforms including Uber, Lyft and DoorDash expressed confidence that the new rule would not force them to reclassify their gig drivers. But business groups warned the rule creates ambiguities and much depends on how the Labor Department enforces it. The rule replaces Trump-era standard that narrowed the criteria for classifying employees as contractors. Such workers are not guaranteed minimum wages or benefits.