"Under the Fair Labor Standards Act (FLSA), the allegation is often raised by employees to recover overtime pay they claim to have been denied," White told HRD. "The claim also arises under state law with employees claiming their employer failed to provide them with state benefits based on their misclassification as an independent contractor." Read more: Uber, Lyft shares plummet after Biden gig rule proposal "So, misclassification litigation by private plaintiffs has been a regular occurrence for some time," White continued. "A new development is the Biden administration's vow to provide more administrative oversight of independent contractors and bring more governmental enforcement actions against employers who misclassify workers."