“Today’s proposed rule takes a cautious approach and essentially takes us back to the Obama days when the industry grew exponentially,” said CR Wouters, the company’s chief of federal affairs. “In times of great economic uncertainty, it is vital that the Biden administration continues to listen to the voices of many. 50 million People who find revenue opportunities in companies like ours. “
Read More About the Gig Economy
Same for lift I got it The proposal emphasized that it would revive the approach under President Barack Obama, where drivers were generally classified as contractors, and would not force the company to change its business model. said the proposal was just the beginning of a longer process.
Businesses, unions, workers and other members of the public have a month and a half to formally comment on the proposal before the department incorporates their feedback into the final rule. Departments then have a great deal of discretion over whether to enforce the rules at a particular company.
“Independent contractors play an important role in our economy, but on many occasions, we have seen employers misclassify their employees as independent contractors,” Martin said. Secretary of Labor J Walsh said in a statement. “Misclassification deprives workers of federal labor protections, including their right to be paid their full legally earned wages.”
David Weil, who oversaw the Obama Labor Department’s approach to classifying workers, warned that just because the department didn’t take enforcement action against Uber and Lyft doesn’t mean it couldn’t. He, Obama administration adopted later in that administration.
“I think it’s true that there are a lot of gray areas in the platform world, but with the caveat that you always have to dig deep into the facts, I don’t think Uber and Lyft are that hard,” Weil said. said. In an interview, he added, “There’s a lot about relationships that look like employees.”
The proposal will help ease mounting pressure from activists supporting gig workers. Activists supporting gig workers complained that the government stepped in too late to protect ride-hailing drivers and other app-based workers.