The US Department of Labour has recently introduced a proposal that will require the companies to entitle the workers to be considered employees and to have more and better benefits and legal protections than their contractors. The reaction to the proposal was almost immediate as share prices for Uber and Lyft dropped following the announcement.&nbsp;

The department further added that it will consider all points from the labourers' side from opportunities and&nbsp;losses and profits to investments to the degree of control.

Labour Secretary Marty Walsh in a statement said, "Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages," Reuters added.

On the other hand, the reaction in the markets for major gig companies was immediate as share prices for ride-hailing companies like Lyft and Uber plummeting by 12% and 10% respectively. However, both companies have reportedly&nbsp;dismissed the significance of the proposed rule and its potential effect on their business..&nbsp;

This includes CR Wooters, head of federal affairs at Uber, saying “Today's proposed rule takes a measured approach, essentially returning us to the Obama era, during which our industry grew exponentially,” in a statement.&nbsp;

<a href="https://www.wionews.com/world/report-something-we-take-very-seriously-us-responds-to-alleged-corruption-in-flood-relief-to-pakistan-524701">Also read |&nbsp;Reports of massive corruption, looting of flood relief to Pakistan from Washington serious, says US</a> 
 
According to reports, one key change in the proposed rules is that employers whether the work provided by the employee is an integral part of their business, which could affect app-based companies almost completely on freelance workers that provide their services.&nbsp;

On the other hand, in a blog post its rival ride-hailing company, Lyft said, “Importantly this rule: Does not reclassify Lyft drivers as employees. Does not force Lyft to change our business model.”&nbsp;

This proposed law comes ahead of the upcoming elections, a major political&nbsp;battle in the United States. The pitched rule aims to overturn the present rule of the Trump administration that states that workers who own their own businesses or who can run one&nbsp;be considered a contractor.

<a href="https://www.wionews.com/world/canada-to-change-express-entry-rules-from-2023-522075">Also read |&nbsp;Canada to change 'Express Entry' rules from 2023</a>

The proposal has not only given a chance to Republicans to criticise Democrats but has also turned companies against it. This rule was under the guidance of former president Obama but&nbsp;was later withdrawn by Trump.

Additionally, a report by Associated Press also claims that&nbsp;in the past gig economy giants have dodged attempts made by the US government to require their drivers to be classified as employees. They have long argued that their workers want to set their own hours as contract workers and require that flexibility. &nbsp;

The rule was welcomed by worker advocacy groups, while employer groups criticised it.&nbsp;According to Wedbush analyst Dan Ives in his research stated that this rule will change the current business model upside down and will cause major changes in the country, Reuters reported.

The new rule will come into effect next year and after a 45-day period following the public announcement during which stakeholders can raise their concerns and comments regarding the proposed law which will end on November 28, said reports. According to the labour department, this new law can change the circumstances for millions of custodians, truck drivers, waiters, construction workers and so on.&nbsp;

(With inputs from agencies)

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The US Department of Labour has recently introduced a proposal that will require the companies to entitle the workers to be considered employees and to have more and better benefits and legal protections than their contractors.

The US Department of Labour has recently introduced a proposal that will require the companies to entitle the workers to be considered employees and to have more and better benefits and legal protections than their contractors. The reaction to the proposal was almost immediate as share prices for Uber and Lyft dropped following the announcement. The department further added that it will consider all points from the labourers' side from opportunities and losses and profits to investments to the degree of control. Labour Secretary Marty Walsh in a statement said, "Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages," Reuters added. On the other hand, the reaction in the markets for major gig companies was immediate as share prices for ride-hailing companies like Lyft and Uber plummeting by 12% and 10% respectively. However, both companies have reportedly dismissed the significance of the proposed rule and its potential effect on their business.. This includes CR Wooters, head of federal affairs at Uber, saying “Today's proposed rule takes a measured approach, essentially returning us to the Obama era, during which our industry grew exponentially,” in a statement. Also read | Reports of massive corruption, looting of flood relief to Pakistan from Washington serious, says US According to reports, one key change in the proposed rules is that employers whether the work provided by the employee is an integral part of their business, which could affect app-based companies almost completely on freelance workers that provide their services. On the other hand, in a blog post its rival ride-hailing company, Lyft said, “Importantly this rule: Does not reclassify Lyft drivers as employees. Does not force Lyft to change our business model.” This proposed law comes ahead of the upcoming elections, a major political battle in the United States. The pitched rule aims to overturn the present rule of the Trump administration that states that workers who own their own businesses or who can run one be considered a contractor. Also read | Canada to change 'Express Entry' rules from 2023 The proposal has not only given a chance to Republicans to criticise Democrats but has also turned companies against it. This rule was under the guidance of former president Obama but was later withdrawn by Trump. Additionally, a report by Associated Press also claims that in the past gig economy giants have dodged attempts made by the US government to require their drivers to be classified as employees. They have long argued that their workers want to set their own hours as contract workers and require that flexibility. The rule was welcomed by worker advocacy groups, while employer groups criticised it. According to Wedbush analyst Dan Ives in his research stated that this rule will change the current business model upside down and will cause major changes in the country, Reuters reported. The new rule will come into effect next year and after a 45-day period following the public announcement during which stakeholders can raise their concerns and comments regarding the proposed law which will end on November 28, said reports. According to the labour department, this new law can change the circumstances for millions of custodians, truck drivers, waiters, construction workers and so on. (With inputs from agencies) WATCH WION LIVE HERE

US Dept of Labour proposes new rules for employee benefits and opportunities; market reacts

Ride-hailing company&nbsp;<a href="https://www.wionews.com/world/uber-co-founder-travis-kalanick-to-leave-companys-board-270071">Uber&nbsp;Technologies Inc</a> and courier services provider&nbsp;Postmates&nbsp;Inc asked a US&nbsp;court to&nbsp;block&nbsp;a&nbsp;California&nbsp;labor&nbsp;law&nbsp;set to go into effect on Wednesday, arguing the bill violates the US&nbsp;Constitution.

In a&nbsp;lawsuit filed in Los Angeles federal court on Monday, the companies and two app-based drivers said the&nbsp;law, which would make it harder for&nbsp;gig&nbsp;economy companies to qualify their&nbsp;workers as independent contractors rather than employees, was irrational, vague and incoherent.

The office of&nbsp;California&nbsp;Attorney General Xavier Becerra said in a statement on Monday it was reviewing the complaint. The bill, called AB5, faces multiple legal challenges.

The&nbsp;law&nbsp;was signed by&nbsp;<a href="https://www.wionews.com/world/donald-trump-threatens-to-withhold-emergency-aid-from-fire-hit-california-259805">California&nbsp;Governor Gavin Newsom</a> in September and has garnered national attention, largely owing to the size of&nbsp;California's workforce and the state's leadership role in establishing policies that are frequently adopted by other states.

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Also Watch: Uber can't fix safety issues

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Backers of the bill, including labor groups, have argued the&nbsp;law&nbsp;protects&nbsp;workers' rights. By classifying the contractors as employees, the companies would be subject to labor&nbsp;laws that require higher pay and other benefits such as medical insurance.

The bill strikes at the heart of the "gig&nbsp;economy" business model of technology platforms like&nbsp;Uber,&nbsp;Postmates, <a href="https://www.wionews.com/world/ride-hailing-company-lyft-rises-in-wall-street-premier-206594">Lyft Inc</a>, DoorDash and others who rely heavily on the state's 450,000 contract&nbsp;workers, not full-time employees, to drive passengers or deliver food via app-based services.

Uber,&nbsp;Postmates&nbsp;and other app-based companies said the legislation compromises the flexibility prized by their workforce, and that fewer&nbsp;workers would be hired were they considered employees.

The companies in their Monday&nbsp;lawsuit called AB5 a "thinly veiled attempt" to target and harm&nbsp;gig&nbsp;economy businesses. Singling out app-based&nbsp;workers violates equal protection guaranteed under the constitutions of the United States and&nbsp;California, the companies argued.

"It irreparably harms network companies and app-based independent service providers by denying their constitutional rights to be treated the same as others to whom they are similarly situated," the&nbsp;lawsuit said.

The companies pointed to allegedly arbitrary exemptions of different non-gig&nbsp;worker&nbsp;groups, including salespeople, travel agents, construction truck drivers, and commercial fishermen.

The full impact of the bill remains unclear in the short term, but the&nbsp;lawsuit cited a study saying the bill would increase ride-hailing company Lyft's operating costs by 20 per cent&nbsp;and lead to some 300,000 fewer drivers in&nbsp;<a href="https://www.wionews.com/world/nasas-trip-to-mars-begins-in-california-clean-room-270678">California</a>.

Uber, Lyft and food delivery company DoorDash have earmarked $90 million for a planned November 2020 ballot initiative that would exempt them from the&nbsp;law.

Ride-hailing company Uber Technologies Inc and courier services provider Postmates Inc asked a US court to block a California labor law set to go into effect on Wednesday, arguing the bill violates the US Constitution.

Ride-hailing company Uber Technologies Inc and courier services provider Postmates Inc asked a US court to block a California labor law set to go into effect on Wednesday, arguing the bill violates the US Constitution. In a lawsuit filed in Los Angeles federal court on Monday, the companies and two app-based drivers said the law, which would make it harder for gig economy companies to qualify their workers as independent contractors rather than employees, was irrational, vague and incoherent. The office of California Attorney General Xavier Becerra said in a statement on Monday it was reviewing the complaint. The bill, called AB5, faces multiple legal challenges. The law was signed by California Governor Gavin Newsom in September and has garnered national attention, largely owing to the size of California's workforce and the state's leadership role in establishing policies that are frequently adopted by other states. Also Watch: Uber can't fix safety issues × Backers of the bill, including labor groups, have argued the law protects workers' rights. By classifying the contractors as employees, the companies would be subject to labor laws that require higher pay and other benefits such as medical insurance. The bill strikes at the heart of the "gig economy" business model of technology platforms like Uber, Postmates, Lyft Inc, DoorDash and others who rely heavily on the state's 450,000 contract workers, not full-time employees, to drive passengers or deliver food via app-based services. Uber, Postmates and other app-based companies said the legislation compromises the flexibility prized by their workforce, and that fewer workers would be hired were they considered employees. The companies in their Monday lawsuit called AB5 a "thinly veiled attempt" to target and harm gig economy businesses. Singling out app-based workers violates equal protection guaranteed under the constitutions of the United States and California, the companies argued. "It irreparably harms network companies and app-based independent service providers by denying their constitutional rights to be treated the same as others to whom they are similarly situated," the lawsuit said. The companies pointed to allegedly arbitrary exemptions of different non-gig worker groups, including salespeople, travel agents, construction truck drivers, and commercial fishermen. The full impact of the bill remains unclear in the short term, but the lawsuit cited a study saying the bill would increase ride-hailing company Lyft's operating costs by 20 per cent and lead to some 300,000 fewer drivers in California. Uber, Lyft and food delivery company DoorDash have earmarked $90 million for a planned November 2020 ballot initiative that would exempt them from the law.

Uber, Postmates sue to block California gig worker law, claiming it's unconstitutional

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US Dept of Labour proposes new rules for employee benefits and opportunities; market reacts

Uber, Postmates sue to block California gig worker law, claiming it's unconstitutional