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Biden nullifies rule that made it easier to classify gig workers as contractors

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WASHINGTON - The Biden administration nullified a Trump-era rule Wednesday that would have made it easier to classify workers as independent contractors, blocking a change supported by delivery and ride-hailing services.The Labor Department's decision came just two days before the Trump-era rule was supposed to take effect.

The move means the Labor Department will continue to use existing rules under the 1938 Fair Labor Standards Act to determine whether a worker should be classified as an independent contractor.Under the existing system, app-based companies such as Uber, DoorDash and Instacart had already been able to classify their gig workforce as independent contractors.

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