Federal gig worker proposal tanks Uber, Lyft and DoorDash stocks – By Harri Weber (Techcrunch) / Oct 11, 2022
The stock prices of Uber, Lyft and DoorDash slid on Tuesday after the Department of Labor announced proposed changes to how workers should be classified. The prospective guidance is intended to “combat employee misclassification,” the federal agency said in a statement.
Soon after, Uber’s share price dropped by more than 10% to $24.61, while Lyft’s tanked more than 12% to $11.22 and DoorDash’s fell more than 5% to $44.98 at the time of writing.
The rule could make it easier for contractors to gain full employment status if they are “economically dependent” on a company. However, the scope of the proposal itself would be limited to areas such as minimum wage enforcement.
Uber, Lyft and DoorDash depend extensively upon gig workers, who haul people and meals around on their behalf but do not receive many hard-won benefits of employment — such as employer contributions towards their Social Security and Medicare taxes. Despite pressure from labor organizers and some lawmakers, some tech firms have fought to continue classifying their workers as independent contractors, arguing the status benefits their businesses, other local businesses and workers themselves.
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