Independent Contractor or Employee? Proposed Labor Rule May Upend Gig Economy
The misclassification of workers has negatively impacted delivery workers, custodians, truck drivers, waiters, construction workers and more, according to the departmentThe 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, potentially curtailing access to benefits and protections they rightfully deserve.
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 reaction in markets for major gig companies was immediate. Shares of Lyft and Uber tumbled about 13%. in early trading.
The misclassification of workers has negatively impacted delivery workers, custodians, truck drivers, waiters, construction workers and more, according to the department.Download NBC 5 Dallas-Fort Worth
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