Biden admin to announce independent contractor rule that could upend gig economy

[Eugene]

Source: Reuters

Biden admin to announce independent contractor rule that could upend gig economy

Daniel Wiessner and David Shepardson
Mon, January 8, 2024 at 10:30 AM EST·3 min read

(Reuters) - The administration of U.S. President Joe Biden will release a final rule as soon as this week that will make it more difficult for companies to treat workers as independent contractors rather than employees that typically cost a company more, an administration official said.

The U.S. Department of Labor rule, which was first proposed in 2022 and is likely to face legal challenges, will require that workers be considered employees entitled to more benefits and legal protections than contractors when they are "economically dependent" on a company.

A range of industries will likely be affected by the rule, which will take effect later this year, but its potential impact on app-based services that rely heavily on contract workers has garnered the most attention. Shares of Uber Technologies Inc, Lyft Inc and DoorDash all tumbled at least 10% when the draft rule was proposed in October 2022.

The rule is among the most impactful regulations ever issued by the Labor Department office that enforces U.S. wage laws, according to Marc Freedman, vice president at the U.S. Chamber of Commerce, the largest U.S. business lobby. But he said the draft version of the rule provides little guidance to companies on where to draw the line between employees and contractors.

-snip-

Read more: https://news.yahoo.com/finance/news/biden-admin-announce-independent-contractor-153013467.html

[underpants]

1. I'm sure Fed Ex has been lobbying hard against this

UPS has been trying to get legislation that makes Fed Ex employees actual employees. Right now, most Fed Ex drivers are either contractors or work for people who own routes. As I understand it.

[JT45242]

2. It is a no brainer -- they engage in interstate commerce, have many 'employees'

This would mean the company would have to pay it's share of social security and FICA and not stiff it to the workers. They would be required to pay at least minimum wage.

These SCAB companies need to be treated like any other employer.

They should also go after the delivery companies for anti-trust violations for the way that they ripped off small restaurants and shops over the last 3 years. I will bet there is evidence of collusion after hearing that all of them jacked up their costs during the pandemic which made it almost impossible for restaurants to break even after DoorDash, UberEats, etc. took their cut off the top.

My wife has worked for a guy who calls her a contractor for years part time. I know it is just so that he can screw her out of paying his fair share of social security, FICA, etc. She thinks it is worth it to have the flexibility that he has given her for unpaid time off. So, I don't fight it any more. And since she works only about 4 hours a week for him now, it is hardly worth the fight.

[NotMissD]

3. This is good news for the people that deliver your dinner and drive you home from the airport

Prices may go up, but they deserve medical care and vacation days. Next step is to unionize them and get them a living wage.

[MichMan]

4. Wonder how this will affect the current flexible schedules that Uber and Lyft drivers can set?

Lots of potential questions.

I don't know of many jobs as an employee where I can decide on any given day if I want to work 0 hours or 12 hours. That flexibility is what makes these jobs attractive to many people as part time side gigs. They can take as little or as much time off as they so desire to work around life.

If everyone is now a regular employee with benefits, will those companies establish set hours and times ? Such as limiting any overtime hours or scheduling drivers to only day or night shifts in specific areas of the city ? "The shift we established for you is from 8 pm to 3 am in BFE. Hope that works for you"

If you need time off for an appointment or errand, will you now need to schedule a vacation or sick day? Would drivers essentially be on call and paid hourly regardless if they are driving or idle at home waiting for a customer ?