The Labor Department on Tuesday proposed a rule that could cut at the heart of the business models of Uber Technologies Inc., Lyft Inc., DoorDash Inc. and other companies that primarily rely on “gig workers,” and could affect the classification of contract workers in many other industries.
Ride-hailing giants Uber and Lyft issued optimistic statements about the new rule Tuesday, while DoorDash and Instacart referred MarketWatch to the Flex Association, which did not immediately return a request for comment. According to the department’s news release, its Wage and Hour Division considered feedback from stakeholders over the summer and is now asking for comment on the proposed rule. Starting Thursday, there will be a 45-day comment period that ends Nov. 28. If the proposed rule is finalized, it is expected to take effect early next year.
They aren’t employees
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