What's Happening?
New gig worker laws are rolling out across the U.S., impacting companies like Uber, Lyft, and freelancers. The U.S. Department of Labor's final rule tightens how companies classify workers under the Fair Labor Standards Act, using a six-factor test to determine if workers are independent contractors or employees. This could mean gig workers gain access to minimum wage, overtime pay, and other employee benefits.
Why It's Important?
The gig economy has offered flexibility and independence, but most gig workers are classified as independent contractors, lacking benefits and protections. The new laws aim to address these issues, potentially reshaping the gig economy landscape. For Uber and Lyft, this represents a high-stakes challenge as they navigate changes in worker classification.
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What's Next?
Uber and Lyft are lobbying to maintain their business models, while freelancers face potential changes in classification. States are implementing laws to address misclassification and provide protections for gig workers. The impact of these changes on the gig economy remains to be seen.
