Labor Department proposal could change gig worker and company rules

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The U.S. Department of Labor has published a new proposal on how workers should be classified saying that thousands of people have been incorrectly labeled as contractors rather than employees:

An Uber sign is displayed inside a car in Palatine, Ill., Thursday, Feb. 10, 2022. The U.S. Department of Labor is proposing a new rule on employee classifications, saying workers have incorrectly been deemed independent contractors, which hurts their rights.

The reaction in markets for major gig companies was immediate. Shares of Lyft and Uber tumbled about 13%. in early trading. The Labor department's proposed rule would help employers and workers determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act.

 

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