Major U.S. Business Groups Sue to Block Biden's Gig Worker Rule

The lawsuit challenges a new rule aimed at providing gig workers with employee benefits, set to take effect on March 11.

Major U.S. business groups, including the U.S. Chamber of Commerce, filed a lawsuit against a Biden administration rule that would make it harder for companies to classify workers as independent contractors.
The rule, set to take effect on March 11, aims to provide gig workers with minimum wage, overtime pay, and other legal protections not afforded to contractors.
The lawsuit claims the Department of Labor's rule violates federal wage law and failed to justify its reversal of a Trump administration rule.
Republicans in Congress, led by Senator Bill Cassidy, are working to repeal the rule, which would require a two-thirds majority to overcome a likely veto by President Biden.
The rule is expected to impact a wide range of industries, including app-based services, construction, healthcare, and retail, by clarifying worker classification standards.