Shulou(Shulou.com)11/24 Report--

On the morning of October 12, Beijing time, it was reported that on Tuesday, local time, the U.S. Department of Labor released a proposed new policy (soliciting opinions and suggestions from society) for gig economic workers. Under this new policy, in the future, US government regulators and courts will likely define gig economic workers as employees rather than current independent outsourced workers.

The so-called gig economy includes some online car-hailing companies, including Uber, Lyft, Instacart, DoorDash, catering takeout, errand purchasing agents, and so on. These enterprises rely on flexible employment based on contracts to complete the workload at their own convenience. The media pointed out that if the proposed policy of the U.S. Department of Labor is formally implemented, it will increase operating costs for all gig economic companies.

On Tuesday, shares of Lyft, the two largest ride-hailing companies in the United States, tumbled 12% and 10.4% on the news. Doordash, a catering takeout company, fell 6 per cent.

In the gig economy, the definition of the identity and welfare treatment of practitioners has caused a long-term controversy. These enterprises said that the flexible working time is very convenient for outsourced workers, and the status of independent outsourced workers can also develop the gig economy. Moreover, some opinion polls also show that practitioners themselves also welcome the employment mode of gig economy.

However, a large number of labour rights groups and experts refuted it. They point out that the employment model of independent outsourced workers in the gig economy can reduce costs and reduce the benefits and rights needed by ordinary employees, such as health insurance benefits, overtime pay and the formation of trade unions.

In 2020, California passed a new law requiring all companies to define independent contract outsourced workers as employees, but in the same year, California passed another bill to exclude ride-hailing and catering delivery companies based on mobile software from the new law.

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