How 2025 Policy Changes Could Shift the Gig Economy

With President-elect Donald Trump set to take office on January 20, 2025, the buzz is all about what’s coming next. For businesses and gig workers, this means gearing up for potential changes that could shake up how things run. Let’s dive into what might be ahead and how you can prepare. While no changes can be implemented until the administration takes office, understanding the potential impacts on key areas like labor laws and immigration is crucial for planning ahead. For gig workers and companies relying on the gig economy, these anticipated changes could bring both challenges and opportunities in navigating the evolving regulatory landscape.

Let’s talk about the Fair Labor Standards Act (FLSA) — the backbone of rules about wages, overtime, and classifications. This law plays a huge role in the gig economy, and it’s worth keeping an eye on what’s changing. For now, the salary threshold for exempt employees is sticking to the 2019 level of $35,568. That’s some stability in a sea of potential changes, but it might not last long. This decision offers temporary stability, but potential revisions under the new administration could simplify the threshold requirements, favoring employers. For gig workers, this could mean fewer disruptions in how companies classify workers or determine eligibility for overtime pay.

How gig workers are classified is back in the spotlight. Independent contractors, who form the backbone of the gig economy, might see some shifts in how they’re defined. The Department of Labor (DOL) recently shifted away from the Trump-era control test, which emphasized worker independence, toward a framework assessing economic dependency. This newer approach scrutinizes whether workers are genuinely independent or reliant on an employer for income. The incoming administration is likely to revisit and possibly revert to the control test, streamlining classifications for businesses and potentially reducing barriers for gig labor. However, this remains a complex and contentious area, so gig workers and companies alike should stay vigilant in ensuring compliance to avoid liabilities.

In addition to classification, minimum wage regulations are likely to see adjustments. While a federal increase to $15 per hour seems unlikely, targeted changes in lower-wage industries like retail and hospitality could indirectly influence parts of the gig economy. For gig workers in these sectors, even modest wage adjustments could improve earnings, though enforcement of these rules may become less stringent under a lighter regulatory approach.

Immigration rules could get tighter, especially around employment-based visas. For gig workers and businesses relying on skilled talent, this might mean jumping through more hoops. For companies in the gig economy that depend on skilled foreign workers, stricter definitions of specialty occupations and higher wage requirements for H-1B visas could pose new challenges. Increased scrutiny and compliance requirements, including the likely mandatory use of E-Verify, will add administrative burdens. These changes could push businesses to focus on building domestic talent pipelines or exploring alternative staffing models, such as remote work.

For gig workers, the impact of immigration reforms may also affect mobility and access to certain types of jobs, especially for those transitioning from student visas to work authorizations. Changes to Optional Practical Training (OPT) could limit opportunities for international graduates, reducing the pool of talent available for businesses. Similarly, restrictions on dependent visas might affect family members of international gig workers, adding further complexity.

While the Trump administration is anticipated to pursue deregulation, including fewer audits and penalties, it is essential for businesses and gig workers to maintain compliance with wage-and-hour laws, worker classifications, and employment verification standards. Staying informed and proactive can mitigate risks, ensuring that both workers and businesses adapt effectively to these changes.

Flexibility is the gig economy’s superpower, but it’s also why it’s often the first to feel the heat of regulatory changes. Staying nimble will be more important than ever. As the legal landscape continues to evolve, preparation is key. By monitoring developments, seeking guidance when necessary, and embracing alternative strategies, gig workers and businesses can navigate these changes and position themselves for success in 2025 and beyond. 2025 policy changes gig economy