This makes employees much more expensive for companies to use than independent contractors - up to 30% more, according to some studies.
Business groups have maintained that independent contracting helps to create jobs and gives workers more flexibility and opportunities to operate their own businesses.
The proposal is similar to legal guidance issued during the Obama administration that was withdrawn by the Labor Department under former President Donald Trump, a Republican.
HOW WOULD THE RULE AFFECT WORKERS?
At the same time, limiting independent contracting could lead some companies to slash the number of workers they hire, eliminating some jobs altogether.