Categories: Politics

The Uber-Lyft group is challenging Biden’s labor choice over blue-collar rule

(Alex Brandon/Associated Press)

The Uber-Lyft group is challenging Biden’s labor choice over blue-collar rule

Jordan Fabian

March 20, 2023

A group representing Uber

Technologies Inc.

Lyft

incl

. and other app-based services worries President

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Biden’s candidate to head the Labor Department because of her stance on employee classification rules.

In a letter to Biden dated Monday

that was shared with Bloomberg News

the Flex

Association Assn.

asked the nominee, Julie Su, to explain how she would implement a proposed rule that could make it easier for workers to be considered employees, rather than independent contractors, in a way that protects independent work.

It also asked the Labor Department to “defer action” on the proposal until the Senate confirms a nominee for secretary. Gig companies like Uber, Lyft, DoorDash

incl

and Instacart

incl

rely heavily on contractors to man their fleets and have been watching the rule closely.

The letter illustrates the battle lines being drawn around Su’s nomination to replace Marty Walsh as

L

abor secretary. Business groups and Republicans have criticized her support for measures affecting the gig economy, while she has received praise from Democrats and unions for her stance on workers’ rights.

The White House sent Sus’s nomination to the Senate last week, allowing the confirmation process to begin.

Flex chief

officers

Kristin Sharp wrote to Biden that the group is concerned that Su does not fully understand the potential impact of the measure and has a track record pointing to an oppositional approach to policymaking that has real-world implications as she seeks to be elevated to serve as the

i.e

Apartments primary policy maker.

The California Court of Appeal reversed most of the ruling and upheld Prop. 22 invalid

A White House official defended Su, saying that:

if confirmed as Labor Secretary,

it would ensure that workers have all the rights and protections available to them under federal law

if confirmed as Labor Secretary

. Proper classification of workers would benefit the economy and guarantee their eligibility for unemployment insurance, overtime pay and minimum wage, the official said

said added

.

Su, who previously served as a deputy

L

abor secretary, led California’s labor department before joining the Biden administration. She supported a law that would make it more difficult for companies to classify employees as contractors, saving companies millions of dollars but denying workers protections

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minimum wage and benefits.

Sharp said the California law, which is being challenged in federal court, wreaked havoc across multiple industries. While Sharp did not oppose Su’s nomination, he demanded that Su explain her views on the policy during the Senate confirmation so stakeholders can properly assess their position on her nomination.

The Biden administration has made a proposal on independent contractor status

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In October, doing so would overturn a Trump-era standard that made it easier for companies to hire people as contractors, which critics say left workers vulnerable to misclassification. The proposed scheme is not yet final.

The proposal imposes a multi-factor test that takes into account all elements of the employment relationship equally to determine whether an employee is an independent contractor or an employee. The Trump-era test gave more weight to a person’s degree of control over their work and the likelihood of gains and losses.

Business groups have criticized the proposal, saying it would increase costs for companies and make the classification process more confusing for employees.

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