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Biden labor proposal shakes up gig economy that relies on contractors

By Daniel Wiessner, Nandita Bose and David Shepardson

A recently proposed U.S. Department of Labor rule 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. 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.

This article is reminiscent of conversations between Anne Rush, CEO, Elasta Jobs, R. Paul Herman, CEO, HIP Investor, and Rose Fonseca, Sr. Manager Enterprise Talent Management, DICK'S Sporting Goods during last Spring's Sustainable Business Forum panel, "Pathfinders of the Workers of Tomorrow Today." As the Founder and CEO of Elasta Jobs, Anne believes that freelancing will play a key role in the future of work as it offers strong benefits to freelancers and companies alike. This recently proposed rule may shake things up.

Read the full Reuters article here and explore our past Sustainable Business Forums here.