Key Takeaways
On Oct. 13 the U.S. Department of Labor published a proposed rule that would change the definition of an independent contractor.
Democratic administrations favor having fewer independent contractors and a standardized set of benefits. This gives more power to unions to organize workers.
The new Labor Department proposed rule would be a serious setback for people who use app-based ride share services and drivers who provide them.
Nothing has changed mass transit more than the app-based gig economy, which gives people the ability to call a ride from a mobile phone. Companies such as Uber, Lyft, Instacart, DoorDash, and Via Transit have used this technology to allow a network of independent drivers to provide rides and commercial deliveries all over America and in many other countries.
But on Oct. 13 the U.S. Department of Labor published a proposed rule that would change the definition of an independent contractor, potentially making drivers permanent employees of ride share and delivery companies. This could put these companies out of business because they rely on part time workers. Comments on the rule are due Nov. 28.
The Department of Labor estimates that there are 22 million independent contractors. Other estimates are closer to 60 million. The number is imprecise because people self-identify as independent contractors.
The app-based economy has benefited Americans by allowing them to monetize previously-unused portions of their time, raising income...
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https://www.heritage.org/jobs-and-labor/commentary/if-you-your-uber-can-you-k...