A U.S. Department of Labor rule proposed Tuesday would make it more difficult for companies to treat workers as independent contractors, a change that is expected to shake up ride-hailing, delivery and other industries that rely on gig workers.
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The proposal would require that workers be considered employees, entitled to more benefits and legal protections than contractors, when they are "economically dependent" on a company. It could have
wide-ranging impacts on company profits and hiring, household incomes and worker quality of life.
The final rule is expected next year, after a 45-day public comment period that begins Thursday.
The Labor Department said it will consider the worker's "opportunity for profit or loss, investment, permanency, the degree of control by the employer over the worker, (and) whether the work is an integral part of the employer’s business," among other factors.
Most federal and state labor laws, such as those requiring a minimum wage and overtime pay, only apply to a company's employees, who can cost companies up to 30% more than independent contractors, studies suggest.