The proposed rule might increase costs for companies like Lyft, Uber and Doordash, which have drivers or food deliverers who don’t have a direct contract with the companies and can create their own schedules.
american companies Uber, Doordash y Lyft fall on the stock market this Tuesday following the Department of Labor has proposed a change in the redefinition of what a “independent worker”.
After hearing the news, at 10:45 local time, the actions of the transport and food delivery company Uber depreciated 9.73%, doordash food delivery fell 7.47% and Lyft transportation were the ones that fell the most, and 10.62%.
However, at 12:30 local time, shares recovered slightly and Uber fell 5.76%, Doordash 4.15% and Lyft 6.95%.
The United States Department of Labor today published a proposal that might pave the way for regulators to reclassify temporary, freelance, or independent workers as employees rather than independent contractors, as they are considered now.
Uber reaction and proposal
The agency said in a statement that the objective of the initiative is to ensure that businessmen do not classify as independent contractors workers who should not be, leaving them without a fair salary and hours.
The proposed rule, if adopted, might increase costs for companies like Lyft, Uber and Doordash that have drivers or food deliverers who do not have a direct contract with the companies and that they can create their own schedules.
While some of these companies have backed up polls to argue that flexible hours are an attraction for workers and that this type of structure is only possible under an independent contractor model.
For his part, the US Secretary of Labor, Marty Walsh, said today that independent contractors have a “big role” In the economy.
Despite this, he assured that the Department he directs has seen many cases in which employers wrongly classify their workers as such, especially the most vulnerable.
Employee Protection
In the United States, companies are required to offer a series of protections to employees such as the payment of a minimum wage and overtime, or contribute to the worker’s social security, which does not happen with contractors.
From now on, a period is open until November 28 for interested parties to make their comments on the proposal of the Executive of Joe Biden.
According to US media, the new regulations would modify the one established by the government of former President Donald Trump (2017-2021), which made it easier for collaborative economy companies to classify workers as independent contractors.
Last year, the Biden Administration tried to rescind that regulation, but a court ruled in favor of upholding it.