Biden’s Independent Contractor Rule Threatens the Evolution of Work

Published

1 year ago

March 13, 2024

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The Labor Department’s new Independent Contractor Rule went into effect Monday, threatening gig workers’ independent status and the freedom and flexibility such workers have come to expect.

The new regulation imposes six criteria that employers must take into account when determining whether to classify a worker as an independent contractor or an employeea distinction that for many businesses ultimately determines whether they can afford to hire the worker at all.

Independent contractor status grants workers greater liberty to choose their schedules, hours, mobility, and clientele, whereas the “employee” designation limits these freedoms in exchange for requiring employers to guarantee benefits, such as health coverage and paid time off. Independent contractors could still receive such benefits before the rule, and competitive gig companies often do offer workers similar perks. But by turning self-employed workers into corporate employees, the new rule turns those optional benefits into mandatory (and usually far less individualized) ones.

The major change, though, is that the rule stands to turn a sizable swath of workers into unionized employeesone of the ways in which President Joe Biden hopes to make good on his promise to become “the most pro-union president in American history.”

One problem with the measure is that it’s unclear whether any one of its six criteria ” outweighs the other ,” making it impossible for businesses to gauge whether they are on the right side of the law. Though the Department of Labor claims the subjectivity of its standards such as a worker’s “skill and initiative,” the “investments by the worker and potential employer,” and the “nature and degree” of worker autonomyis meant to grant employers agency over worker designations, the U.S. Chamber of Commerce alleges that these nebulous parameters are crafted with the opposite intention in mind.

To their point, the rule’s sextet of definitive criteria concludes with a vague caveat: “additional factors may be relevant.”

The new rule is constructed in such a way that “the only time [employers] can be confident is if they call a worker an employee,” Marc Freedman , the Chamber’s vice president of workplace policy, told the Associated Press. Larger companies like Lyft and Uber might have the resources to protect workers’ independent contractor status and hash it out in court if need be, but smaller competitors are stuck between a rock and a hard place: less able to afford the legal risks, but unable to shoulder the costs of treating independent workers as employees either. The rule threatens to run them out of the market.

Sen. Bill Cassidy (RLa.), who plans to introduce a resolution to repeal the rule, adds that the new regulations will bully employees as well. “Independent contractors…are shielded from forced or coerced unionization that would strip their flexibility away,” Cassidy has said , making the self-employed a critical target “for large labor unions who want more workers paying forced union dues.”

It makes sense that unions would be bullish on the Biden measure: In a 2022 McKinsey study, more than a third (36 percent) of the workers surveyed identified as independent contractors. That’s a whopping 33 percent increase from 2016, suggesting that the portion of the American workforce forgoing the traditional 9-to-5 format in favor of self-employment is rising. That’s a threat to these unions’ business model.

A rule that restricts workers’ independence is hardly a winning proposition among those it aims to protect. A Bureau of Labor Statistics (BLS) survey reveals that “fewer than 1 in 10 independent contractors would prefer a traditional work arrangement” to their current one, and that nearly 4 in 5 are happier to be self-employed than in a traditional corporate job. A Harvard Business Review study yields some insight as to why: 59 percent of the respondents cited workplace flexibility and autonomy as being more important than salary or other benefits.

It’s not just workplace flexibility that the self-employed find so appealing: Pay still mattersand when it does, independence still wins. While the union-friendly outlet More Perfect Union alleges that the forthcoming rule “will mean higher wages and overtime pay for millions of workers in gig jobs, healthcare, construction, and more,” the data tell a different story. According to the BLS, among full-time workers, independent contractors’ median weekly earnings are nearly identical to those of traditional workers. Part-time independent contractors’ median earnings are 30 percent higher than the median earnings of traditional part-time workers ($333 to $255).

Part of that might owe to the rigidity to which corporations must often adhere when setting employees’ hours. Whether they’re part-time or full-time, there are limits on just how much traditional employees can work in a given day or week, with few opportunities to put in an extra bit of hustle if they have a big car payment coming upor, conversely, to take a little time off to deal with a stressful life event. In a review of the public comments made to the Labor Department following the rule’s proposal, Quartz quoted a nurse who reported that “being able to work on the side as an independent contractor for [an] infusion company allows me to work extra without burning out.”

No wonder that when the California State Legislature passed its infamous Assembly Bill 5 (on which the new Independent Contractor Rule is modeled), self-employment declined by 10.5 percent and California’s work force shrank by 4.4 percent, on average, among affected occupations.

Meanwhile, the costs of both enforcing and conforming to the new rule could be staggering. Susan Houseman, a labor economist at the Upjohn Institute, notes that for the rule to be effective, it “must be coupled with enforcementyet dollars (in inflation adjusted terms) for enforcement of such employment regulations have dramatically declined over the decades.” With a sizable share of the population now identifying as independent contractors and with 40 percent of workers reporting that they had done some freelance work over the past year, cracking down on alleged worker misclassification could place a heavy burden on American taxpayers.

Consumers could also face higher prices as businesses struggle to foot the bill of transitioning their independent contractors to “employee” status. Reuters reports that businesses spend around 30 percent more for each employee than they do for every contractor.

So what’s the advantage of reclassifying independent workers as employees? The same as the disadvantage: It makes it harder for workers to be their own boss, to choose their own schedules, to represent themselves, to set their priorities as they see fit. If you believe in the evolution of the workplace and worker self-determination, this is bad. But if you believe in a one-size-fits-all work model where individuals are employed by traditional businesses and represented by traditional unions, this is great.

Politics

Bitcoin’s physical infrastructure is the industry’s most overlooked asset

Published

2 hours ago

May 28, 2025

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Bitcoin’s physical infrastructure is the industry’s most overlooked asset

Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot

A new proposal to install Bitcoin ATMs in federal buildings highlights an important question: Can crypto truly go mainstream without a stronger physical presence? For years, the industry has focused on software and decentralization, but its reluctance to invest in real-world infrastructure is starting to show. Without physical access points, crypto risks becoming an exclusive, insiders-only system, rather than the open alternative it sets out to be.

Everyone loves to talk about decentralization. There’s a good reason behind this. It defines the movement, shapes the technology, and supports the vision of a better financial system. While the industry focuses on code and algorithms, it lacks something basic. A decentralized system that exists only online is not genuinely decentralized.

Physical infrastructure is the missing link

Bitcoin’s physical infrastructure is the missing link. Without tools like ATMs, kiosks and access points at traditional retail locations, crypto remains out of reach for millions. Decentralization is not just about removing intermediaries. True decentralization requires expanding access. Without real-world touchpoints, even the most advanced network becomes limited to a closed circle of insiders.

Recent: Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

For crypto to become mainstream, it must be easy to reach digitally and physically. That means showing up in places people already go and seamlessly integrating into people’s lives. Many groups in the American population still rely on cash or don’t have access to traditional banks. According to the latest Federal Deposit Insurance Corporation report, around 5.6 million American households don’t have a bank or savings account. Bitcoin ATMs give these users access without needing an app, a bank account or a crash course in blockchain. Most crypto tools today assume a level of financial fluency and infrastructure that millions simply do not have. The result is a digital-only ecosystem that locks out newcomers and widens the divide between early adopters and everyone else.

User-friendly screen in the right place

Physical infrastructure helps address this issue. A Bitcoin ATM in a grocery store or gas station is not just a convenience but a bridge to financial inclusion. It is an invitation to someone who has never bought crypto, telling them they can participate. No bank, no broker, just a user-friendly screen in a familiar place.

These machines also generate new economic activity. Local businesses benefit from increased foot traffic as the kiosks create passive revenue. For many communities, they provide access to a parallel financial system that was previously out of reach. This is a tangible example of crypto’s real-world utility. It is already happening, and it is measurable.

The crypto industry’s blind spot

The industry often treats physical infrastructure like an afterthought. The obsession with building new digital solutions has created a blind spot. Innovation without usability builds systems that serve the few but exclude the many. If someone can buy Bitcoin (BTC) at the same place they buy their morning coffee, that is when crypto stops feeling like an obscure digital asset and starts becoming part of everyday life.

As governments increase regulation, trusted and transparent interfaces will become more important. When operated within regulatory frameworks, Bitcoin ATMs offer a way to provide access between traditional finance and digital assets. They are familiar, easy to monitor and offer a more approachable entry point for the general public.

Like any financial tool, Bitcoin ATMs have drawn scrutiny, particularly in cases where bad actors use them. Rather than dismissing the machines themselves, we should focus on investing in better oversight, stronger consumer education and smarter regulation. The overwhelming majority of people who use Bitcoin ATMs do so for legitimate reasons: to send remittances, to move money securely or to access digital assets without traditional banking barriers. Building trust does not mean avoiding or dismantling physical access, but improving it.

The first time someone uses Bitcoin should not involve reading a white paper or navigating a tutorial. It should be as familiar as using an ATM or tapping a payment terminal. This is not an argument against innovation. Software and protocols will continue to evolve and play an important role. Physical infrastructure provides something those tools cannot: trust through presence. When people can see and use crypto in their neighborhood, at a store they already visit or in a format they already understand, it changes how they think about crypto and who it is for.

According to Coin ATM Radar, there are over 30,000 Bitcoin ATMs in the US. It’s a meaningful start, but still only a small step toward widespread access.

Crypto’s long-term success will depend not just on innovation but also on inclusion. That means building more than networks; it means building presence. When people can interact with crypto in the physical world, it stops being abstract and becomes usable. That is how digital finance becomes everyday finance.

Opinion by: Scott Buchanan, chief operating officer of Bitcoin Depot.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Politics

Polygon-backed, high-yield blockchain launches for institutional adoption

Published

2 hours ago

May 28, 2025

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Polygon-backed, high-yield blockchain launches for institutional adoption

The Katana Foundation, a nonprofit focused on decentralized finance (DeFi) development, is launching its private mainnet, aiming to unlock greater crypto asset productivity via deeper liquidity and higher yields for users.

The Katana Foundation launched a DeFi-optimized, private blockchain, Katana, on May 28, incubated by GSR Markets and Polygon Labs, with the public mainnet launch set for June.

The new blockchain will enable users to earn higher yields and explore DeFi in a “unique, optimized yield environment” that unlocks latent value through an ecosystem that makes every digital asset “work harder,” according to an announcement shared with Cointelegraph.

“DeFi users deserve ecosystems that prioritize sustainable liquidity and consistent ‘real’ yields,” wrote Marc Boiron, the CEO of Polygon Labs and core contributor at Katana, adding:

“Katana’s user-centric model turns inefficiencies into advantages, establishing a truly positive-sum environment for builders and participants alike.”

Katana aims to solve the crypto industry’s liquidity fragmentation issue, which can cause significant price slippage, as one of the main barriers limiting institutional DeFi participation

To reduce the value slippage in DeFi, Katana’s blockchain concentrates the liquidity from numerous protocols and collects yields on all potential sources to create an ecosystem with deeper liquidity and more predictable lending and borrowing rates.

Institutional participation in DeFi is set to triple over the next two years to 75% from 24% of 350 surveyed institutional investors, according to management consulting firm EY-Parthenon.

To tackle the growing institutional liquidity needs, Katana’s liquidity pool is composed of multiple protocols, including lending protocol Morpho, decentralized exchange (DEX) Sushi and perpetual DEX Vertex, enabling users to trade “blue-chip assets” without needing crosschain transfers.

Katana has also incorporated Conduit’s sequences and Chainlink’s decentralized oracle network.

Katana to compound DeFi yield from “Ethereum-based opportunities”

Katana aims to boost sustainable yield by building a cohesive DeFi ecosystem. For instance, VaultBridge deploys bridged assets into overcollateralized, curated lending strategies on Ethereum via Mopho to earn yield, which is routed back and compounded on Katana.

The protocol will reinvest network fees and a portion of application revenue back into its ecosystem.

“This reduces reliance on short-term incentives, generates consistent yield, and as it grows, acts as an increasingly stable backstop during periods of volatility and liquidity shocks,” Polygon Labs’ Boiron told Cointelegraph, adding:

“Yield is distributed pro-rata to each chain using VaultBridge protocol based on their share of total deposits into VaultBridge.”

“So if Katana supplies 20% of the total vault deposits, it receives 20% of the yield back,” he added.

Katana will subsequently allocate its share of yield to users through boosted DeFi incentives across “core apps” such as Sushi, Morpho or Vertex. The yield is generated from “Ethereum-based opportunities and then enhanced through Katana’s core applications,” said Boiron.

Polygon Labs’ CEO previously criticized DeFi protocols for fueling a cycle of “mercenary capital” by offering sky-high annual percentage yields (APYs) through token emissions.

Beyond infrastructure-related limitations, regulatory uncertainty remains another significant barrier to institutional DeFi adoption.

Regulatory concerns were the main barrier to entry, flagged by 57% of institutional investors as the main reason for not planning to participate in DeFi activities.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

World

Hamas’s Gaza chief ‘eliminated’, says Netanyahu – but military sources say they cannot confirm death

Published

2 hours ago

May 28, 2025

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Hamas's Gaza chief 'eliminated', says Netanyahu - but military sources say they cannot confirm death

Hamas’s Gaza chief Mohammed Sinwar has been “eliminated”, according to Israel’s Prime Minister Benjamin Netanyahu.

But Israeli military sources have said they are not yet able to confirm the death.

Hamas has also not yet confirmed the apparent killing of its leader.

Meanwhile, with Gaza on the brink of famine, the Palestinian ambassador to the United Nations broke down in tears as he spoke of the suffering of its people.

Riyah Mansour told the Security Council: “Children are dying of starvation. The images of mothers embracing their motionless bodies. Caressing their hair, talking to them, apologising to them, is unbearable.”

He added: “I have grandchildren. I know what they mean to their families. And to see this situation over the Palestinians without us having hearts to do something is beyond the ability of any normal human being to tolerate. Flames and hunger are devouring Palestinian children. This is why we are so outraged as Palestinians everywhere.”

Sinwar was one of Israel‘s most wanted and the younger brother of the Palestinian militant group’s former leader Yahya Sinwar.

The older sibling was the mastermind of the October 7 2023 attack, which killed 1,200 people in Israel, with around 250 others taken hostage into Gaza.

The attack triggered Israel’s assault on Gaza which decimated the territory, with more than 53,000 people killed, mostly women and children, and over two million displaced, according to health officials, who do not distinguish between civilians and combatants in their tally of fatalities.

Yahya Sinwar was killed in a gun battle with Israeli troops in Gaza last October. His younger sibling was believed to have then become the head of Hamas’s armed wing.

Speaking to the Knesset on Wednesday, Mr Netanyahu included Mohammed Sinwar in a list of Hamas leaders killed in Israeli strikes. Later, Israel Defence Forces (IDF) sources said they were not yet able to confirm the death.

The prime minister said: “We have killed tens of thousands of terrorists. We killed (Mohammed) Deif, (Ismail) Haniyeh, Yahya Sinwar and Mohammed Sinwar.” He did not elaborate.

Mohammed Sinwar had reportedly been the target of an Israeli strike on a hospital in southern Gaza on 13 May and Mr Netanyahu said on 21 May that it was likely he had been killed.

The Israeli military had said it struck a Hamas command centre under the European Hospital in the Sinwars’ hometown of Khan Younis, and it declined to comment on whether Sinwar was targeted or killed.

At least six people were killed in the strike and 40 wounded, Gaza’s health ministry said at the time.

Sinwar rose through ranks

Like his older brother, Mohammed Sinwar joined Hamas after it was founded in the late 1980s as the Palestinian branch of the Muslim Brotherhood. He became a member of the group’s military wing, known as the Qassam Brigades.

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Sinwar rose through the ranks to become a member of its so-called joint chiefs of staff, bringing him close to its longtime commander, Deif, who was killed in a strike last year.

“In the last two days, we have been in a dramatic turn towards a complete defeat of Hamas,” the Israeli leader told the Knesset.

Mr Netanyahu also spoke about how Israel was “taking control of food distribution”, a reference to a new aid distribution system that has been criticised and boycotted by humanitarian groups and the UN.

One killed at site of aid hub

The development comes after one person was killed and 48 others injured when forces opened fire on a crowd that overwhelmed an aid hub in Gaza, according to local health officials.

Palestinians have become increasingly desperate for food after almost three months of Israeli border closures. A blockade has recently been eased.

People broke through fences around the distribution site on Wednesday, and a journalist with the Associated Press said they heard Israeli tank and gunfire, and saw a military helicopter firing flares.

It was not yet known whether the death and injuries were caused by Israeli forces, private contractors or others.

The Israeli and US-backed Gaza Humanitarian Foundation, which set up the hub outside Rafah, said its military contractors had not fired on the crowd but “fell back” before resuming aid operations. Israel said its troops nearby had fired warning shots.

The UN and other humanitarian organisations have rejected the new system, saying it will not meet the needs of Gaza’s 2.3 million people and allows Israel to use food to control the population.

Israel has vowed to seize control of Gaza and fight until Hamas is destroyed or disarmed and exiled, and until the militant group returns the last 58 hostages, including around a third thought to be still alive.

‘This is a man-made catastrophe’

Meanwhile, a US trauma surgeon who has been working in Gaza urged the UN Security Council to not “claim ignorance” about the humanitarian devastation.

Dr Feroze Sidhwa said: “Let’s not forget, this is a man-made catastrophe. It is entirely preventable. Participating in it or not allowing it to happen is a choice.

“This is a deliberate denial of conditions necessary for life: food, shelter, water and medicine. Preventing genocide means refusing to normalise these atrocities.”

The UN World Health Organization has documented around 700 attacks on healthcare facilities in Gaza during the war. Israel accuses Hamas of using hospitals as command centres and to hide fighters.