The Biden Administration is rescinding a Trump-Era ruling that makes it easier for employers to classify workers as contractors. The rule was previously enacted in January by the outgoing Trump administration.

The January revision to the Fair Labor Standards Act adjusted the "economic reality" test used to determine if a paid worker is legally considered a contractor or fully vested employee. The adjustments would have likely slanted some courts in favor of employers, though as of the official withdrawal of the FLSA adjustments on May 6, the Trump-era rule had not been used in any cases.

The rule wasn't likely to survive long, as some warned, due to the desire of the incoming Biden administration to roll back controversial Trump-era regulations and expand labor rights. According to the Department of Labor, the revisions made under former President Donald Trump to the FLSA conflicted with its purpose;

"After reviewing the approximately 1,000 comments submitted in response to the NPRM, the Department has decided to finalize the withdrawal of the Independent Contractor Rule. As explained in the final rule, the Department believes that the Rule is inconsistent with the FLSA's text and purpose, and would have a confusing and disruptive effect on workers and businesses alike due to its departure from long standing judicial precedent."

As the rule hasn't been applied in any form yet, it is unlikely that the second revision will cause any problems. Previous guidance is still considered to be in effect, such as the DoL's previously issued seven factor test.

The revision is likely the first of many significant changes to be made by the Biden administration at the Department of Labor. The desired expansion of workers' rights sought by the administration may see the revision of existing guidance. Many gig employers such as Uber (UBER  ), DoorDash (DASH  ), Grubhub (GRUB  ) and Lyft (LYFT  ) may soon find themselves facing entirely new guidance on the classification of workers.