Labor Market

Europe's Labor Rules Are Holding It Back

As the U.S. loosens regulations for workers, the E.U. takes the opposite approach.

Reem Ibrahim | 3.4.2026 12:11 PM

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Last week, the U.S. Department of Labor proposed a new rule that would increase the flexibility of independent contractors and reduce employment costs for app-based service companies, such as Uber and DoorDash. Specifically, the rule would rescind current classification standards and replace them with a streamlined "economic reality" test to more easily determine whether a worker can be classified as an independent contractor. 

Although the proposed rule could benefit both employers and America's nearly 12 million gig workers, what makes it especially notable is the widening transatlantic divergence on labor laws. 

In December 2024, the European Union adopted rules to "reclassify many gig workers........

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