Uber and Lyft addressed by Labor Department in proposed rule

The question of whether Uber and Lyft drivers should be classified as employees or independent contractors is one that seems to come up often. The United States Labor Department recently proposed a rule that clarifies the differences between the two. 

The rule notes that the degree and nature of the worker’s control over their labor should be a factor that’s included. Additionally, the amount of control a worker has over their own profits or losses through their own initiative would also matter. This sets a standard that would show that rideshare workers don’t meet the terms of an employee.

The rule also adds things like how much skill is required and the permanence of the position. It includes whether the individual’s work has any contribution to the company’s integrated production unit. Analysts say that it might appear as though this is bad news for the rideshare companies, but that the contrary is true. 

The proposal from the Labor Department makes it clear that Uber and Lyft drivers are gig workers because of the terms that have to be met in order to be considered employees. This could do a lot to stop the questioning about this classification and help to provide both workers and the companies with some clarity.

Any New York worker who thinks that they’re misclassified as an independent contractor instead of an employee should find out what’s going on. Your attorney can help you to discover what points might mean that you’re in the wrong classification and work with you to find out how you can obtain the proper classification. This helps you to ensure that you have the benefits that you’re due.

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