Joe Biden to Upend Millions of Americans' Jobs Under New Rule

The Biden administration is expected to announce a new contractor rule this week, which could impact millions of American workers who are employed in the gig economy and treated as economically independent from the companies they work for.

The new U.S. Department of Labor rule is an answer to the massive growth experienced by the gig economy in recent years. It employed an estimated 36 percent of American workers, or about 57.2 million people, before the pandemic, according to Gallup and Statista. In 2023, the latter estimated the number of freelancers in the U.S. to be 73.3 million. Newsweek contacted the U.S. Department of Labor for comment by phone on Tuesday but did not receive an immediate response.

With the new legislation, independent contractors would be entitled to the same benefits and legal protections as regularly employed workers. It would replace the Trump administration's regulation that said any workers who own their own business or have the ability to work for competing companies can be treated as contractors.