A new law regarding the gig economy from the Biden administration will go into effect in March 2024, making it harder for companies to classify workers as independent contractors instead of employees. This policy will also aid in protecting overtime pay and preventing wage theft. Many app-based companies like Uber (UBER), Lyft (LYFT), and DoorDash (DASH) rely heavily on these independent contractors, so what will be the impact on these companies from this new law? Former California Labor Department Director Michael Bernick joins Yahoo Finance to discuss the state of the gig economy and how companies will conduct business once this new law goes into effect. "It doesn't eliminate the gig economy. It merely changes the rules on how you classify between gig economy workers and employees," Bernick says, adding: "We had this in California, we went through a similar process in California in 2019 with the passage of AB 5 that made it more difficult in our state to classify workers as independent contractors... What we find out is... it's a company-by-company process, so it's not as if a whole category of independent contractors or app workers are changed." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino.

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