The Biden administration is proposing a new labor rule that could classify millions of gig workers in thr United States as employees rather than independent contractors.

World Business Watch: Labor Department proposal may lead to US gig workers gaining employee status

The Biden administration has proposed to bring in a new law to classify thousands of independent workers as regular employees—a move that could shake up the ride-hailing and delivery companies, and other app-based industries who primarily rely on gig workers.

Under the proposed law, which has been unveiled by the U.S. Labour Department on Tuesday, these gig workers would be treated on par with the regular employees and would be entitled to a minimum wage, overtime, and contributions to unemployment insurance.

The new proposal would work on the principle of “totality-of-the circumstances” to analyse all of the factors involved in the working relationship equally.

The department has said that it will use multi-factor economic realities, such as job permanency, how much control workers have over their work and how many opportunities they are given to increase their earnings, among other factors, for determining the working relationship between the employer and gig workers.

“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors,” labour secretary Martin J. Walsh said in a statement.

“Misclassification deprives workers of their federal labour protections, including their right to be paid their full, legally earned wages.”

Recently, Uber and Lyft have claimed in federal filings that they would be forced to alter their business models if they start treating their drivers as employees, according to the New York Times.

They stated that labour costs would rise 20 to 30 per cent if gig workers are given all the benefits of a regular employee.

The proposal will be published in the Federal Register on October 13 and the public will have 45 days to comment on it.

(With inputs from agencies)

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The Biden administration has proposed to bring in a new law to classify thousands of independent workers as regular employees—a move that could shake up the ride-hailing and delivery companies, and other app-based industries who primarily rely on gig workers.

The Biden administration has proposed to bring in a new law to classify thousands of independent workers as regular employees—a move that could shake up the ride-hailing and delivery companies, and other app-based industries who primarily rely on gig workers. Under the proposed law, which has been unveiled by the U.S. Labour Department on Tuesday, these gig workers would be treated on par with the regular employees and would be entitled to a minimum wage, overtime, and contributions to unemployment insurance. The new proposal would work on the principle of “totality-of-the circumstances” to analyse all of the factors involved in the working relationship equally. The department has said that it will use multi-factor economic realities, such as job permanency, how much control workers have over their work and how many opportunities they are given to increase their earnings, among other factors, for determining the working relationship between the employer and gig workers. “While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors,” labour secretary Martin J. Walsh said in a statement. “Misclassification deprives workers of their federal labour protections, including their right to be paid their full, legally earned wages.” Recently, Uber and Lyft have claimed in federal filings that they would be forced to alter their business models if they start treating their drivers as employees, according to the New York Times. They stated that labour costs would rise 20 to 30 per cent if gig workers are given all the benefits of a regular employee. The proposal will be published in the Federal Register on October 13 and the public will have 45 days to comment on it. (With inputs from agencies) WATCH WION LIVE HERE:

Biden govt brings in law to classify gig workers as regular employees

A US government watchdog said Monday that a key measure of unemployment is based on flawed data, making assessing the impact of the coronavirus pandemic on jobs more difficult.

Since Covid-19 struck the United States in March, weekly data on applications for unemployment benefits have become a critical piece of real-time information to track job losses amid business shutdowns.

But the Labor Department "has reported flawed estimates of the number of individuals receiving benefits each week throughout the pandemic," the independent General Accountability Office (GAO) said in a report.

"This record should be corrected so that future analyses of the effects of expanded UI benefits rely on accurate information," the report said.

The Labor Department uses state data on new jobless benefit applications, but because those offices were overwhelmed with claims, the backlog distorted the national figure.

Also read|&nbsp;<a href="https://www.wionews.com/world/more-people-died-by-suicide-in-october-than-from-covid-19-in-2020-in-japan-346347">More people died by suicide in October than from COVID-19 in 2020 in Japan</a>

The GAO, which works for Congress, called on the department to retroactively fix the figures, and clarify in the weekly report that data on the number of weeks of benefits paid no longer offers an accurate count of the number of people receiving benefits.

The Labor Department did not respond to a request for comment from AFP, but GAO said the department agreed to provide the warning in the news release although it pushed back on correcting the figures.

"Without an accurate accounting of the number of individuals who are relying on these benefits in as close to real time as possible, policymakers may be challenged to respond to the crisis at hand," the report said.&nbsp;

In the week ended November 21, 778,000 new jobless claims were filed, a 30,000 increase from the prior week. Nearly 20.5 million people were receiving some form of unemployment aid as of the week ended November 7.

A US government watchdog said Monday that a key measure of unemployment is based on flawed data, making assessing the impact of the coronavirus pandemic on jobs more difficult.

A US government watchdog said Monday that a key measure of unemployment is based on flawed data, making assessing the impact of the coronavirus pandemic on jobs more difficult. Since Covid-19 struck the United States in March, weekly data on applications for unemployment benefits have become a critical piece of real-time information to track job losses amid business shutdowns. But the Labor Department "has reported flawed estimates of the number of individuals receiving benefits each week throughout the pandemic," the independent General Accountability Office (GAO) said in a report. "This record should be corrected so that future analyses of the effects of expanded UI benefits rely on accurate information," the report said. The Labor Department uses state data on new jobless benefit applications, but because those offices were overwhelmed with claims, the backlog distorted the national figure. Also read| More people died by suicide in October than from COVID-19 in 2020 in Japan The GAO, which works for Congress, called on the department to retroactively fix the figures, and clarify in the weekly report that data on the number of weeks of benefits paid no longer offers an accurate count of the number of people receiving benefits. The Labor Department did not respond to a request for comment from AFP, but GAO said the department agreed to provide the warning in the news release although it pushed back on correcting the figures. "Without an accurate accounting of the number of individuals who are relying on these benefits in as close to real time as possible, policymakers may be challenged to respond to the crisis at hand," the report said. In the week ended November 21, 778,000 new jobless claims were filed, a 30,000 increase from the prior week. Nearly 20.5 million people were receiving some form of unemployment aid as of the week ended November 7.

US watchdog finds flaws in key unemployment data

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims rising to 223,000 in the latest week.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.

The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling.&nbsp;

Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data.

There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade.

<a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">Federal Reserve Chairman Jerome Powell</a> told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story)

Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades.

&nbsp;Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch.

Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy.&nbsp;

The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects.

Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March.&nbsp;

The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy. Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast claims rising to 223,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week. The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling. Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data. There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade. Federal Reserve Chairman Jerome Powell told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story) Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades. Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch. Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy. The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects. Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March. The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

United States weekly jobless claims fall to three-month low