Shares of Uber, Lyft, and other gig economy companies jumped Thursday after the Trump administration proposed repealing a Biden-era rule on worker classification. Uber shares rose 4%, while Lyft climbed 4%, DoorDash gained 4%, and Maplebear advanced 3.3% following the announcement.

The U.S. Department of Labor released a proposal to scrap the 2024 rule that made it harder for companies to classify workers as independent contractors. The rule required businesses to treat workers as employees under federal wage law when they are "economically dependent" on the company. The new proposal would replace this standard with one focusing on company control over workers, a framework favored by business groups.

The repeal will benefit companies in trucking, healthcare, retail sales, and app-based transportation and delivery services that rely heavily on contractors. Employees can cost businesses up to 30% more than contractors because they are entitled to minimum wage, overtime pay, unemployment insurance, and other protections.