Certain contractors would become employees under a new Biden labor rule.

The U.S. Department of Labor on Tuesday proposed a rule that would make it harder for businesses to treat employees as independent contractors. 

This change is anticipated to upend the business models of the ride sharing, delivery, and other sectors that depend on gig workers.

The idea would mandate that when workers are "economically dependent" on a corporation, they must be treated as employees, 

who are entitled to more benefits and legal protections than contractors.According to the Labor Department, among other things, it will take into account workers' 

potential for gain or loss, the permanence of their employment, and the level of influence an employer has over them.

The majority of federal and state labor rules, including those that mandate a minimum wage and overtime pay, only apply to the personnel of a corporation.

According to a statement from U.S. Labor Secretary Marty Walsh, companies frequently mistakenly identify vulnerable workers as independent contractors.

In line with legal advice offered by the Obama administration that was revoked by the Labor Department under former President Donald Trump, 

the new proposal embraces a broader definition of who qualifies as an employee.According to a poll conducted by the freelancing marketplace Upwork in December 2021,

almost 60 million Americans, or more than one-third of all workers, completed some type of freelance work in the previous year.