London Daily

Focus on the big picture.
Wednesday, Sep 23, 2026

Biden blocks Trump-era gig-worker rule

Biden blocks Trump-era gig-worker rule

Decision removes an extra layer of assurance gig companies wanted to prevent workers from being classified as employees

The Biden administration is blocking a Trump-era regulation that would have made it easier to classify gig workers and others as independent contractors, a policy that had been sought by companies such as food-delivery and ride-sharing services.

The Labor Department said Wednesday it is nullifying a rule it completed in early January that sought to make it more difficult for a gig worker to be counted as an employee under federal law. Having status as an employee, rather than a contractor, means those workers are covered by federal minimum-wage and overtime laws.

Employees are also better positioned than contractors to organize into labor unions. The Biden administration has made creating union jobs a priority.

The Labor Department is acting this week to block the rule before it was implemented Friday, following a common practice of presidents of different parties undoing the prior president’s pending rules early in a new administration.

Nullifying the Trump rule maintains the decades long status quo, which has largely allowed app-based services to not count drivers and other providers as employees. But Wednesday’s action removes an extra layer of assurance gig-economy companies had sought as a way, they said, to modernize labor laws.

The Labor Department isn’t planning to offer new regulations for independent contractors in the near future, said Jessica Looman, principal deputy administrator for the department’s Wage and Hour Division.

"We are going back to the decade’s old analysis and we really feel that this is the space where we can best protect workers," she said on a call with reporters. "When it comes to digital workers...we want to make sure that we continue to look at their needs, how they are interacting with their individual employers and whether or not they have the protections of the Fair Labor Standards Act."

By blocking the Trump rule, the Labor Department will continue to use its previous regulation to enforce the Fair Labor Standards Act, which was enacted in 1938. While Wednesday’s action doesn’t immediately change how gig workers are classified, it leaves ambiguity about how a Depression-era law will be applied to a smartphone economy. Ms. Looman said the department will look for opportunities to enforce existing laws, especially as they apply to lower-wage workers.


She said Wednesday’s announcement should not dramatically change how the department regulates app-based services but said the department is engaging with those companies and others about labor-law enforcement.

"The fact that we are moving and are embracing a pro-worker position doesn’t mean that we’re anti-employer," Ms. Looman said.

Earlier this year, Uber Technologies Inc. applauded the Trump rule, saying it recognized the flexibility gig workers sought and called the previous regulation—which now is remaining in place—outdated. Trump administration officials said their rule made it easier for Americans to be self-employed and set their own hours.

The Trump rule, announced on Jan. 6, was to be implemented on March 8, but the Labor Department delayed it from going into effect until Friday, as part of President Biden’s broader freeze on pending regulations.

Labor Secretary Marty Walsh, in an April interview with The Wall Street Journal, said that legitimate independent contractors are an important part of our economy, but the Trump-era rule made it too easy to deny workers employee status.

"We’ve seen employers are increasingly misclassifying their workers as independent contractors in order to reduce labor costs and take a lot of protections away from workers, including minimum wage and overtime," Mr. Walsh said.

The back-and-forth contractor regulations are in part a response to California rules applied to gig companies.

In November, voters in California exempted Uber, Lyft, DoorDash and others from a state law that would have forced them to reclassify their drivers as employees, eligible for broad employment benefits. While the exemption allowed the companies to preserve their business models in the most populous U.S. state, they did concede some new benefits such as health insurance for drivers who worked 15 hours or more a week, occupational-accident insurance coverage and 30 cents for every mile driven.

At the time, the companies said they would lobby to make this model—flexibility for drivers with limited benefits—the national standard.

Newsletter

Related Articles

0:00
0:00
Close
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×