Flex, a trade association for major gig companies like Uber and Lyft, is endorsing President Trump's nominees for the Labor Department—Lori Chavez-DeRemer and Keith Sonderling. This endorsement could significantly impact how gig workers are classified. Currently, these workers are labeled as independent contractors, which keeps costs low for companies. However, if the Labor Department rolls back protections and changes classification rules, it would affect wage standards and benefits, drawing stark opposition from labor advocates who push for equal worker protections.
The Department of Labor has a key role in helping build a future-forward, modern economy. That includes supporting app-based independent work, which benefits millions of earners, consumers, and communities.
If gig companies were forced to classify their workers as employees, labor costs would dramatically rise, complicating the profitability goals of these firms.
A Trump-led Labor Department could roll back workplace protections on wages and collective bargaining rights, significantly impacting gig workers’ access to benefits.
Certain lawmakers and advocacy groups argue that this new way of work deserves to have the same protections and classifications as traditional employment.
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