Why third-party delivery companies think this new Biden rule is a win for them

On Jan. 9, the U.S. Department of Labor announced a final rule on classifying workers as employees or independent contractors. Although the new six-factor guide is meant to help clarify and, in many cases, tighten standards around misclassification of workers, third-party delivery companies are confident that it is business as usual for delivery workers.

As the legal landscape around third-party delivery workers begins to shift substantially through local legislation — including a new New York City minimum wage law for contractors that work for delivery apps — on a federal level, standards might not change much for these same delivery app workers.

The final rule, which goes into effect on March 11, 2024, reinterprets the 1938 Fair Labor Standards Act and negates the effects of the Independent Contractor Status Under the Fair Labor Standards Act, which was passed during the Trump administration.