- October 12, 2022
- Posted by: Stratford Team
- Category: Economy
Shares in the largest gig economy companies in the US tumbled after the Biden administration proposed a new rule that would make it more likely that gig workers will be classified as employees instead of independent contractors.
Ride-hailing app Uber fell as much as 16.7 per cent, while shares in rival Lyft and food delivery service DoorDash hit record lows during trading in New York on Tuesday as investors worried the US labour department’s proposal would dramatically raise wage costs.
The proposal would establish a “test” that the labour department could use to determine if workers are employees or independent contractors based on how much control they have over their hours and their job responsibilities. It lowers the bar to employee status from the rule written under former president Donald Trump’s administration.
Because these companies, and some other businesses, classify their workers as contractors, they are not legally required to…
