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☆ Bill Nygren is looking to stocks with 'unsustainably low' price-earnings ratios. Here are his picks
▼ + stars: | 2022-10-12 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

The volatile market is pushing some cyclical stocks' price-earnings ratios to levels that Bill Nygren, portfolio manager at Oakmark Funds, sees as "unsustainably low." "When the markets are really volatile like they have been, that tends to lead to an increase in the distribution of P/E ratios," Nygren said on CNBC's "Squawk on the Street." Nygren said that recession fears are driving down companies' P/E ratios. This number is what you get when you divide a stock's price by the annual earnings per share. Nygren said stocks that are currently selling at lower-than-typical P/E ratios have long-term value for investors who can wait out current pressures on company earnings and share values.

Gig company stocks were hammered by the news, with Uber (UBER.N), Lyft (LYFT.O) and DoorDash (DASH.N) all falling at least 10%. The proposal would require that workers be considered employees, entitled to more benefits and legal protections than contractors, when they are "economically dependent" on a company. Millions of Americans are working "gig" jobs and this labor has become vital to some transportation, restaurant, construction, health care and other industries. "Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages," Walsh said. Seth Harris, President Joe Biden's former top labor adviser, said the rule will not directly impact how courts determine whether workers are employees or independent contractors.

Gig company stocks were hammered on the news, with Uber (UBER.N), Lyft (LYFT.O) and DoorDash (DASH.N) all falling at least 10%. Employees can cost companies up to 30% more than independent contractors, studies suggest. U.S. Labor Secretary Marty Walsh in a statement said businesses often misclassify vulnerable workers as independent contractors. Those groups have said that any broad rule would hurt workers who want to remain independent and have flexibility. Worker advocacy groups have said that companies are increasingly misclassifying employees as independent contractors, depriving workers of fair pay and benefits to pad their profits.

☆ 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.

☆ New Biden labor rule would make contractors into employees
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Oct 11 (Reuters) - The U.S. Department of Labor proposed a rule on Tuesday that would make it more difficult for companies to treat workers as independent contractors, a change that is expected to shake up the business models of the ridesharing, delivery and other industries that rely on gig workers. The proposal would require that workers be considered a company's employees, who are entitled to more benefits and legal protections than contractors, when they are "economically dependent" on the company. The Labor Department said it will consider workers' opportunity for profit or loss, the permanency of their jobs, and the degree of control a company exercises over a worker, among other factors. Register now for FREE unlimited access to Reuters.com RegisterReporting by David Shepardson and Nandita Bose in Washington, Daniel Wiessner in Albany, New York; Editing by Doina Chiacu and Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ Biden Rule Would Add More Gig Workers to Company Payrolls
▼ + stars: | 2022-10-11 | by ( Gabriel T. Rubin | David Harrison | ) www.wsj.com time to read: 1 min

The Biden administration is proposing a new rule that could put more gig workers on company payrolls, scrapping a Trump administration rule from 2021 that made it easier for firms to classify workers as independent contractors. The proposal, released Tuesday, would affect millions of workers across a range of industries, including healthcare, restaurants, construction and ride-share transportation, the Labor Department said.

☆ Uber, Lyft shares sink after Labor Department issues proposal on gig workers
▼ + stars: | 2022-10-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUber, Lyft shares sink after Labor Department issues proposal on gig workersShares of ride-hailing companies Lyft and Uber fell following the opening bell on Tuesday after the U.S. Labor Department issued a proposal to classify drivers as employees, not contractors.

☆ 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.

☆ 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.

☆ Meta’s headset makeover yields a $1,500 toy in search of a purpose
▼ + stars: | 2022-10-11 | by ( Allison Morrow | ) edition.cnn.com time to read: +7 min

On Tuesday, Meta unveiled its latest effort in that mission, the Meta Quest Pro headset. But it costs $1,500 — nearly four times that of the company’s cheapest Quest 2 headset. Wages are up an estimated 5% this year in manufacturing — that’s not keeping up with inflation, but it is in line with the national average. “But by and large our manufacturing jobs today are high tech.”Bottom line: The labor story in America remains one where the narrative of recent history doesn’t quite hold. In most downturns, we’ve seen manufacturing decline, giving it a bad rap as a job that’s going extinct.

☆ Gig worker rule comes at bad time for gig economy
▼ + stars: | 2022-10-11 | by ( Jennifer Saba | ) www.reuters.com time to read: +4 min

President Joe Biden’s administration is seeking to turn some independent contractors into employees. Shares of Uber, Lyft and DoorDash were down approximately 7% by noon in New York. Analysts expect Uber, DoorDash and Lyft to earn EBITDA margins of just 5% to 7% of revenue this year, according to Refinitiv. A gig worker rule comes at the worst possible time for America’s gig economy. The rule would require companies that rely on so-called gig workers to designate them as employees, making them eligible for more benefits and legal protections.

☆ 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.

☆ Stocks making the biggest moves midday: Amgen, Uber, Lyft, Zscaler and more
▼ + stars: | 2022-10-11 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

Amgen — The biopharma stock jumped 6.2% after Morgan Stanley upgraded Amgen to overweight from equal weight, saying Amgen is "largely derisked" and provides defensiveness for investors. Walgreens' rally came after the company announced an acquisition of healthcare firm CareCentrix. Leggett & Platt — Shares dropped 7.3% after the industrial manufacturer cut its full-year sales and earnings guidance, citing rising inflation and challenging economic conditions. Zscaler — The cloud security stock dropped 5% after Zscaler announced the resignation of company president Amit Sinha. ON Semiconductor , Qualcomm — Semiconductor stocks continued their decline on Tuesday after the Biden administration on Monday announced new restrictions on exports to China.

☆ The labor department's proposal sparks selloff of gig economy stocks
▼ + stars: | 2022-10-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe labor department's proposal sparks selloff of gig economy stocksTusk Ventures' Bradley Tusk, an early investor in Uber, joins 'Closing Bell' to discuss the labor departments proposal to classify gig workers as employees, how union forces are striving to get more worker's rights, and the market selloff sparked by the Biden Administration's announcement.

This makes employees much more expensive for companies to use than independent contractors - up to 30% more, according to some studies. Business groups have maintained that independent contracting helps to create jobs and gives workers more flexibility and opportunities to operate their own businesses. The proposal is similar to legal guidance issued during the Obama administration that was withdrawn by the Labor Department under former President Donald Trump, a Republican. HOW WOULD THE RULE AFFECT WORKERS? At the same time, limiting independent contracting could lead some companies to slash the number of workers they hire, eliminating some jobs altogether.

☆ Uber, Doordash plunge after Labor Department proposes change to gig worker classification
▼ + stars: | 2022-10-11 | by ( Lauren Feiner | ) www.cnbc.com time to read: +3 min

The Biden Labor Department released a proposal Tuesday that could pave the way for regulators and courts to reclassify gig workers as employees rather than independent contractors. The proposed rule, if adopted, could raise costs for companies like Lyft , Uber , Instacart and DoorDash that rely on contract workers to pick up shifts on their own schedules. Shares of Uber and Lyft fell more than 11% Tuesday morning, while DoorDash dropped about 9%. The new proposed rule will still need to make its way through the formal regulatory process, including allowing time for the public to submit comments, before it is adopted. It added that the rule "Does not reclassify Lyft drivers as employees," and also doesn't force it to change its business model.

☆ Entrepreneurs are tapping freelancers amid the labor shortage. Here are 7 of the top trending searches on Fiverr where freelancers make between $25 and $10,000 per project.
▼ + stars: | 2022-10-05 | by ( Alexandra York | Jennifer Ortakales Dawkins | ) www.businessinsider.com time to read: +1 min

Entrepreneurs and major companies are tapping freelancers for help amid the labor shortage. Meanwhile, business owners can earn substantial revenues by advertising their offerings. Here are seven of the top trending searches globally across Fiverr, from NFT art to 3D modeling. Both small-business owners and major companies are tapping freelancers for help amid the labor shortage. Meanwhile, business owners can earn substantial revenue by advertising their offerings.

This makes employees much more expensive for companies to use than independent contractors - up to 30% more, according to some studies. Business groups have maintained that independent contracting helps to create jobs and gives workers more flexibility and opportunities to operate their own businesses. The Labor Department has not revealed any details of the proposal, but is widely expected to restrict independent contracting. Last year, U.S. Labor Secretary Marty Walsh told reuters that many gig workers should be classified as employees. Groups representing trucking companies, gig economy firms and freelance workers have unsuccessfully challenged California's 2019 law adopting the "ABC test."

☆ Rideshare, retailers brace for tough U.S. independent contractor rule
▼ + stars: | 2022-09-27 | by ( Nandita Bose | ) www.reuters.com time to read: +6 min

Broadly defining independent contractors as employees would also force companies to pay benefits, such as overtime pay and health benefits, that would hurt their bottom line. Employers can save about 30 percent by skipping payroll taxes and unemployment and benefit costs, workers' groups estimate. The meetings at the White House were one-sided, with officials at OIRA letting groups speak and not participating or asking follow-up questions, several employer sources said. A White House official said that listening without comment is part of the standard rulemaking process at OIRA. WORKERS WARN OF GROWING PAINGig Workers Rising, RideShare Workers United, Mobile Workers Alliance, We Drive Progress also met White House officials to broaden the definition of employee further, according to records and sources.

☆ Kroger is doubling down on its subscription delivery business as it weans itself off of Instacart. Here's a rundown of its other initiatives, from ghost kitchens to smart carts
▼ + stars: | 2022-09-26 | by ( Alex Bitter | Nancy Luna | ) www.businessinsider.com time to read: +12 min

Here are Kroger's biggest e-commerce and technology initiatives:A ClusterTruck ghost kitchen inside a Kroger in the Midwest. ClusterTruckGhost kitchensIn December 2019, Kroger began improving its prepared meals offering by partnering with ghost kitchen startup ClusterTruck. The delivery-focused ghost kitchen touts a Cheesecake Factory-inspired menu of 80 to 100 food items. Over the last few years, ClusterTruck opened locations inside Kroger stores in Indiana and Ohio. But the firm, which tracks where consumers shop, said Kroger stores with the ghost kitchens are seeing an uptick in visits compared to neighboring Kroger branches.

Reese Brown on a travel nurse assignment in New Jersey in May 2020. The short-lived travel nurse boom was a temporary fix for a long-term decline in the profession that predates the pandemic. In the 1980s and the 1990s, travel nurses were often covering for staff nurses who were on maternity leave, meaning that 13-week contracts become common. By 2021, travel nurses were earning an average of $124.96 an hour, according to the research firm — three times the hourly rate of staff nurses, according to federal statistics. Courtesy Pamela Esmond“The reality is they don’t pay staff nurses enough, and if they would pay staff nurses enough, we wouldn’t have this problem,” she said.

☆ Influencers on social media are starting to fight back against the platforms that profit from their followings
▼ + stars: | 2022-08-31 | by ( P.E. Moskowitz | ) www.businessinsider.com time to read: +13 min

But then other users began noticing the same thing, and in late July, Kim and Kourtney Kardashian and Kylie Jenner all posted a block of text reading "MAKE INSTAGRAM INSTAGRAM AGAIN." Influencer as workerA study published last year compiled data from 30 in-depth interviews with content creators on platforms like TikTok, Instagram, and YouTube. But often, creators don't see themselves as people with the ability to fight back. That may be slowly changing, with influencers and content creators realizing that they need to work together more to demand more transparency and standards in their industry. The second hurdle is more personal: Many, if not most, content creators still do not see themselves as laborers.

☆ How to make 6 figures on Taskrabbit, according to 4 top-rated users
▼ + stars: | 2022-07-19 | by ( Ann Matica | ) www.businessinsider.com time to read: +7 min

Then, he hired someone from Taskrabbit to help him move and found out how lucrative work through the site could be. To make the most profit possible while completing tasks, Young plans his routes the night before and abides by a tight schedule during the day. Read more: I'm a 23-year-old who's made more than $130,000 on TaskRabbit this year — here's howRead more: I've made more than $155,000 on TaskRabbit this year. When money started to get tight and Garcia was close to getting evicted in 2019, she turned to Taskrabbit work full-time. Read more: I make $7,000 a month on Taskrabbit doing odd jobs like event planning, gift wrapping, and organizing closets.

☆ The 29-year-old CEO of one of the hottest companies in cannabis shares how she founded the startup in her dorm room and turned it into a recruiting powerhouse
▼ + stars: | 2022-05-20 | by ( Jeremy Berke | ) www.businessinsider.com time to read: +5 min

Karson Humiston built Vangst into a cannabis recruiting powerhouse before her 30th birthday. But because the cannabis industry was so new, there were few resources to help them get access to the jobs, training, and skills they'd need to succeed. Vangst is now one of the top recruitment platforms in the exploding cannabis industry. Vangst says it works with over 1,200 cannabis companies and has placed over 150,000 people into full- or part-time roles. Humiston said the company was looking to expand and offer more "Cannabis 101" classes and training programs to job seekers.

In that environment, crooks were easily able to impersonate jobless Americans using stolen identity information for sale in bulk in the dark corners of the internet. When Yvonne Matlock lost her job last year and applied for unemployment benefits online, she was told she was already getting relief money. Through a public records request, NBC News obtained data from the Labor Department, which funds Covid relief unemployment benefits programs, that are riddled with blank values and underestimates. ID.meMore than two-thirds of states, 34, reported no cases of identity theft overpayments in the most vulnerable unemployment benefits program. Cash App, which describes itself as "the easiest way to send money, spend money, save money, and buy cryptocurrency," has been frequently used by fraudsters to move money, law enforcement officials and private consultants said.

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