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☆ Labor proposal could upend rules for gig workers, companies
▼ + stars: | 2022-10-11 | by ( Associated Press | ) www.nbcnews.com time to read: +2 min

Misclassifying workers as independent contractors denies those workers protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over businesses, and hurts the economy, the department said Tuesday. The misclassification of workers has negatively impacted delivery workers, custodians, truck drivers, waiters, construction workers and more, according to the department. Wedbush analyst Dan Ives said the proposal would constitute a major change for workers and employers from previous years. Last year the Biden administration repealed a Trump-era rule that would have made it easier to classify workers as independent contractors. The repeal meant the Labor Department was able to continue using existing rules under the 1938 Fair Labor Standards Act to determine whether a worker should be classified as an independent contractor.

☆ The Biden administration wants to make it easier for gig workers to be full-time so Uber drivers and home health workers could qualify for benefits and better pay
▼ + stars: | 2022-10-11 | by ( Jason Lalljee | Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

The Labor Department announced a proposal making it easier for gig workers to be classified as employees. That proposal comes after years of pushback from gig work companies like Uber and Lyft. It's no secret that gig work has been spreading, as the rise of on-demand apps necessitated the rise of on-demand workers. Part of the expansion of unemployment benefits, which also included an additional $600 and then $300 a week, made gig workers eligible for benefits for the first time. The Labor Department announcement comes after years of organizing from labor activists pushing for gig workers to be classified as full employees.

☆ Proposed labor rule could give millions of gig workers employee status
▼ + stars: | 2022-10-11 | by ( Vanessa Yurkevich | ) edition.cnn.com time to read: +3 min

CNN Business —The Biden administration is proposing a new labor rule that could classify millions of gig workers as employees — a move that would challenge the low-cost labor models behind Silicon Valley heavyweights such as Uber, Lyft and DoorDash. The proposed rule announced by the Labor Department on Tuesday aims to broaden the test that determines whether workers are entitled to protections such as minimum wage and overtime pay under federal law. The new rule would affect workers in a wide range of industries like home care, trucking, delivery services, and hospitality, according to the Labor Department. Shares of Uber (UBER (UBER)) and Lyft (LYFT (LYFT)), whose drivers are considered independent contractors, fell nearly 10% on the news of the proposed rule. A 45-day public comment period on the proposed rule will start October 13.

☆ Here’s what a new Biden administration labor proposal would mean for independent contractors
▼ + stars: | 2022-10-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Rudi_suardi | E+ | Getty ImagesThe Biden administration will soon issue a rule that may make it easier for workers to be considered "employees" instead of "independent contractors." Misclassification of workers as independent contractors — also known as freelancers or the self-employed — instead of employees is happening across many industries, like construction, health care, restaurants, retail and transportation, Labor Department officials said Tuesday. Employers may benefit financially by classifying their workforce as contractors instead of employees. These companies often classify gig workers as independent contractors. Federal action would especially be a boon to "low-wage, vulnerable workers," Labor Department officials said.

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