Gig economy firms say new rule won’t impact driver classification

Staffing Industry Analyst (SIA) report that gig economy firms are saying that the new independent contractor rules will not affect their operations.

Uber Technologies Inc. and Lyft Inc. said a new rule issued Jan. 9 won’t affect their operations or how they classify drivers as independent contractors. Delivery platform DoorDash Inc. also said the new rule won’t impact the classification of its delivery drivers.

“This rule does not materially change the law under which we operate and will not impact the classification of the over 1 million Americans who turn to Uber to earn money flexibly,” Ube said in a statement.

The new rule was released by the US Department of Labor. It uses a multifactor “economic reality” test to determine whether a worker is an independent contractor or not. Industry observers have said the new rule won’t have a large impact when it comes to independent contractor litigation. However, the US Chamber of commerce said the new rule will have significant negative impacts on the economy, and the chamber said it may file suit over the rule.

Lyft noted the new rule is similar to the approach used by the Obama administration, and the approach did not apply to app-based companies.

“While we are still reviewing the new final rule, our initial view is there is no immediate or direct impact on Lyft’s business at this time,” Lyft said in a statement. However, it did say the new rule creates additional complexities.

“The new rule emphasizes a broader approach to determining if a worker is an employee or independent contractor under the [Fair Labor Standards Act],” according to Lyft’s statement. “While the intent of the rule was to provide clarity, this new guidance creates additional complexities and ambiguities for companies and courts alike across the country.”

Read the full story at Gig economy firms say new rule won’t impact driver classification

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.