US Capital

Contractor or employee? Labor Department proposes new definitions

From Transport Topics.

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, 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 Oct. 11.

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 truck drivers, delivery workers, custodians, waiters, construction workers and more, according to the department.

See the complete article from Transport Topics online.