NEW YORK (AP) — The Biden administration nullified a Trump-era rule Wednesday that would have made it easier to classify workers as independent contractors.
The Labor Department’s decision came just two days before the Trump-era rule was supposed to take effect.
The move means the Labor Department will continue to use existing rules under the 1938 Fair Labor Standards Act to determine whether a worker should be classified as an independent contractor.
Under the existing system, app-based companies such as Uber, DoorDash and Instacart had already been able to classify their gig workers as independent contractors.
But those companies had applauded the Trump administration rule, arguing that the Depression-era law was outdated and did not provide the flexibility demanded by the digital era.