Shares in big economy companies such as Uber, Lyft and DoorDash fell on Thursday after Labor Minister Marty Walsh said many workers in the sector were incorrectly classified as contractors. In many cases gig workers should be classified as employees, ”Walsh told Reuters in an interview.
As a result, Walsh has stepped into a decade-long controversy over the treatment of independent contractors that make up the majority of the employees behind the on-demand economy and bad practice remains a force. Inspired protests Reuters framed his comments as a sign that Biden̵7;s management could take a more proactive approach to governing these companies.
Treatments to contractors as employees require a business start-up to provide minimum wages, health insurance, and unemployment insurance, making companies reluctant to switch. After California reclassifies gig workers as employees, Uber, Lyft and other companies have poured $ 200 million into a voting initiative to overturn the law. A referendum under the banner protects workers’ freedom. (And consumer bags) passed in November.
In a Washington Post statement, the Labor Department urged observers not to use Walsh’s comments as a policy change: “The secretary is reiterating that incorrect classification is a widespread problem affecting the entire economy. And workers “
But the big threat to the gig economy business model, not the government, is the economy.For example, Amazon was in a hilarious outbreak of employment at $ 15 an hour and recently announced it would raise workers by half. Million people Restaurants, manufacturing plants and logistics businesses also say they’re fiercely competitive for workers, as you can see from the ubiquitous signs in courtyards, industrial gardens and storefronts: “No experience needed! ”
Until now, there hasn’t been much evidence that Biden Boom forced employers to raise wages and improve conditions to compete for low-income workers! But there are tons of anecdotes, and these aren’t Marty Walsh, something Uber, Lyft, and DoorDash (and shareholders) should worry about.
If independent contractors want a better job than bringing a remote working crowd for lunch on a daily basis, they may not need to wait for more regulations.
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