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☆ Here's the outlook for corporate financial results as the worsening global economy is poised to lift the US dollar higher
▼ + stars: | 2022-10-12 | by ( Jason Ma | ) www.businessinsider.com time to read: +6 min

Good morning, this is Jason Ma and today's edition highlights the outlook for corporate financial results as the US dollar rises. Here's what a strong dollar means for stocks as earnings season heats up. If the reading tops 8.3%, then expect the stock market to sell off by 5%, the bank's trading desk said. But readings below 8.1% could spark some big gains for the stock market. How has the strong dollar affected your portfolio?

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.

☆ U.S. government back and forth on 'gig' workers, contractors
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +3 min

A DOL proposal in September 2020 made it easier for companies to classify workers as independent contractors if they operated an independent business and had opportunities for profit or loss. BIDEN ADMINISTRATIONThe administration of Democrat Joe Biden blocked the Trump rule in May 2021. A U.S. district judge in Texas in March 2022 blocked the Biden administration withdrawal and ordered the Trump rule to take effect. In June 2022, the DOL said it would develop a proposed rule on determining employee or independent contractor status. It held forums in June to hear from workers and companies.

☆ Uber, Lyft slump as U.S. proposal on workers a potential blow to gig economy
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

read moreAnalysts said there is a lot of uncertainty around the proposal expected to come into effect next year, but the move was "a clear blow to the gig economy". Lyft said the move does not require a change of its business model, while Uber said it plans to engage with authorities. Gig companies have long been criticized for the lack of benefits they offer their independent contract workers, who have also faced a rise in living costs this year. The companies have rejected calls for reclassification, saying surveys showed the majority of their workers do not want to be employees. Slammed by the fears, Uber, Lyft and Doordash were set to erase over $10 billion in their collective market valuation.

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.

☆ Labor Department Proposes Changes to Independent Contractor Rules
▼ + stars: | 2022-10-11 | by ( Gabriel T. Rubin | ) www.wsj.com time to read: 1 min

A delivery driver for UberEats and DoorDash in New York last January. The rule change could make it harder for companies to classify workers as independent contractors. The Labor Department said it would revisit rules that designate whether workers are classified as employees or independent contractors, a move that could affect millions of gig and contract workers in healthcare, restaurants, ride-share transportation, and many other industries. The department released a rule proposal on Tuesday that would change how labor laws define independent contractors. The new rule, if approved, would rely on a “multifactor economic reality test” to determine whether a worker is truly in business by themselves and controls aspects of their employment like whether they perform managerial duties, how they are supervised and whether they are able to set prices.

☆ 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.

☆ 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.

☆ 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.

☆ 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.

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, Lyft and DoorDash tumble as Biden administration proposes gig-worker rule that eases path to full employee
▼ + stars: | 2022-10-11 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

DoorDash, Lyft and Uber all fell Tuesday after the Biden administration proposed a change to employee classifications. The companies say the contractor classification is more attractive to workers seeking a flexible schedule. Shares of Uber tumbled 7.6% to $25.43 in midday trading, while DoorDash fell 3% to $46.21, and Lyft plummeted 7.4% to $11.86. The Biden administration took steps last year toward changing the classification by rescinding a Trump-era rule that made it easier for gig employers to classify workers as contractors. Instead of waiting to see the full ramifications of the Trump Labor Department's rule, the Biden administration said in its notice to the Federal Register that it's moving to walk back the rule now.

☆ 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.

☆ FedEx's reduced holiday forecast no surprise to skeptical contractors
▼ + stars: | 2022-10-11 | by ( Lisa Baertlein | ) www.reuters.com time to read: +5 min

Bush has delivered packages for FedEx Ground for 15 years, and in that time, he said, "they haven't had accurate projections." The updated holiday forecast will help ensure that contractors have appropriate resources for the peak delivery season while minimizing preparation costs, FedEx said in a statement. More than half the 20 contractors who spoke with Reuters for this story were not planning to bulk up operations to meet the company's original holiday forecast. Their previously unreported silent work action shows the distrust many Ground contractors have in company leadership. Last year, FedEx's overly bullish holiday forecast left many contractors with losses after they geared up with trucks and employees for a surge that failed to materialize.

☆ 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.

☆ North Hollywood strippers set to vote on joining a union
▼ + stars: | 2022-10-09 | by ( Natasha Chen | ) edition.cnn.com time to read: +5 min

Los Angeles CNN —Strippers at the Star Garden topless dive bar in North Hollywood will soon receive ballots to hold an election for collective bargaining, which may result in the first stripper union in the US in more than a decade. On Nov. 7, the NLRB will count the votes from Star Garden dancers, entertainers and DJs, determining if they will join the Actors Equity Association, a union of performers and other show business professionals. The facts are clear: The workers at Star Garden are entitled to a union election,” said Andrea Hoeschen, assistant executive director and general counsel for Actors’ Equity Association. “Most of the purportedly eligible voters have never been employees of Star Garden; they were in fact, and in law, merely lessees with no employment relationship,” Gaylord and Linker wrote. Since then, the dancers have been picketing most weekends outside the Star Garden, dressed in themed costumes, urging patrons to go to different clubs.

☆ 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.

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."

☆ Freight Labor Unrest Is Going Global and Weighing on Supply Chains
▼ + stars: | 2022-09-21 | by ( Paul Berger | Liz Young | ) www.wsj.com time to read: +7 min

Newsletter Sign-up The Logistics Report Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology. But this complex movement of goods underpinning the global economy is far more vulnerable than many imagined. The Biden administration narrowly avoided a systemwide freight rail shutdown last week after brokering a last-minute deal between railroads and unions. The Biden administration narrowly avoided a systemwide freight rail shutdown last week after brokering a last-minute deal between railroads and unions. The labor concerns have grown as some of the broader pandemic-driven upheaval in supply chains, including factory closures and vessel backlogs at ports, have eased.

☆ Freight Labor Unrest is Going Global and Weighing on Supply Chains
▼ + stars: | 2022-09-21 | by ( Paul Berger | Liz Young | ) www.wsj.com time to read: +7 min

☆ FedEx warns of a global recession, cutting sales forecast by half a billion dollars
▼ + stars: | 2022-09-16 | by ( Chris Isidore | ) edition.cnn.com time to read: +4 min

New York CNN Business —FedEx warned that a global recession could be coming, as demand for packages around the world tumbles. What’s more, FedEx said it expects business conditions to further weaken in the current second quarter, which runs through November. While global revenue this quarter is likely to be flat compared to a year earlier, FedEx’s earnings are expected to plunge more than 40%. Additionally, the Dow Transportation Index fell 5%, while shares of FedEx rival UPS (UPS) closed about 5% lower. While it gave the sharply lowered guidance for the current quarter, FedEx said it was withdrawing its full-year guidance issued in June due to the “continued volatile operating environment.

☆ Amazon says it will raise pay and add more benefits for some delivery drivers, though the group that protested for higher pay amid rising gas prices was left out
▼ + stars: | 2022-09-14 | by ( Samantha Delouya | ) www.businessinsider.com time to read: +2 min

The program will add a 401(k) plan and educational programs for participants in Amazon's Delivery Service Partner program. Amazon Flex workers protested earlier this year for higher pay, but they are not affected by this announcement. The e-commerce giant announced Tuesday that it is boosting pay and adding benefits for some delivery drivers after workers protested earlier this year amid rising gas prices. However, this wage increase affects Amazon's Delivery Service Partner program, which is separate from Amazon's Flex program. Amazon covers fuel costs for Delivery Service Partners, but it does not cover all fuel costs for Flex delivery partners.

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