Connect with us

News

Uber/Lyft Drivers One Step Closer To Becoming Employees

Published

on

Image for article titled Uber/Lyft Drivers One Step Closer To Becoming Employees

Photo: Justin Sullivan / Staff (Getty Images)

Uber and Lyft certainly won’t be happy about this, but the New York Times reports that the Labor Department has issued a proposal that would make it significantly easier for rideshare drivers to be considered employees. Along with stronger worker protections, drivers would also get company benefits they currently don’t have access to as contractors.

As the article describes it:

The proposed rule is essentially a test that the Labor Department will apply to determine whether workers are contractors or employees for companies. The test considers factors such as how much control workers have over how they do their jobs and how much opportunity they have to increase their earnings by doing things like offering new services. Workers who have little of either are often considered employees.

The new version of the test lowers the bar for that employee classification from the current test, which the Trump’s administration’s Labor Department created.

That said, the new test won’t make Uber and Lyft drivers full employees overnight. The Labor Department has authority to enforce things like minimum wage and overtime laws, but the IRS and individual states have their own rules. You would think most other regulators would defer to the Labor Department when updating their own policies, but it’s not a guarantee. Still, it’s a step in the right direction.

“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors. Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages,” said Secretary of Labor Marty Walsh in a statement.

You can also expect Uber, Lyft and other gig-economy companies to try to fight the new test. After all, they’ve fought regulations for years and have worked to get legislation passed that ensures their drivers remain classified as independent contractors.

For example, when California passed AB5, a law that imposed a strict standard for classifying someone as an independent contractor, they pushed back hard. They then spent hundreds of millions of dollars on a deceptive campaign to get Proposition 22 passed, a law that would allow app-based rideshare and delivery companies to hire drivers as independent contractors. That law has since been struck down.

Continue Reading

Recent News

Personal Injury Lawyer Personal Injury Lawyer
Law18 hours ago

Finding the Best Personal Injury Lawyer in Lumberton, NC

Personal injury law is designed to protect individuals who have been harmed due to the negligence or wrongful actions of...

WhatsApp Business WhatsApp Business
Business24 hours ago

Running WhatsApp Business with Pro+VPS for Android Emulator

WhatsApp Business is one of the most powerful tool for Business to manage customers communication. Running it can enhance the...

Civil Partnership Visa Civil Partnership Visa
Finance2 days ago

Civil Partnership Visa vs Spouse Visa: Which One is Right for You

Choosing the right visa to join your partner in the UK can be confusing. Two common options are the Civil...

Crypto Crypto
Crypto3 days ago

Staked Crypto – A Step-by-Step Guide for Beginners

Ethereum staking has become an increasingly popular way for cryptocurrency holders to earn passive income through staking rewards. In this...

Ethereum Staking Ethereum Staking
Crypto5 days ago

Maximizing Ethereum Staking Rewards: Tips and Tricks

Are you looking to maximize the potential of your Ethereum holdings? Stake Ethereum using OkayCoin and take advantage of the...

Wedding Wedding
Wedding5 days ago

4 Wedding Services You Can Quickly Check Off Your To-Do List

Organizing a wedding might like arranging a large-scale symphony, in which each element must work together to produce a beautiful...

Luxury Shopping Luxury Shopping
Lifestyle5 days ago

Luxury Shopping in Ibiza: A Guide to the Finest Boutiques

Ibiza is synonymous with lavish lifestyles, sun-soaked beaches, and electrifying nightlife. But beyond the party scene and stunning seascapes, the...

Indian Brides Indian Brides
Fashion1 week ago

Top Trends in Diamond Necklaces for Indian Brides

As Indian brides gear up for their big day, the selection of the perfect diamond necklace is crucial. Diamond necklaces...

Snaptik Snaptik
Entertainment1 week ago

Snaptik: The Ultimate Tool for Watermark-Free TikTok Downloads

Snaptik stands out as the top tool for downloading TikTok videos without watermarks. It fights the issue of videos having...

Bedroom Bedroom
Lifestyle1 week ago

Refresh Your Bedroom: Summer-Inspired Interior Designs

Not only does June signal the midpoint of 2024, but it also signals the arrival of summer. With the changing...