The Biden administration's Labor Department has proposed a rule change that could further hurt the American economy by forcing new regulations on freelance workers.
The new rule that is currently under public comment for further consideration would force independent contractors to change their classifications in many cases to enforce more small business regulations that could end countless freelance jobs.
Biden Labor Department Announces New Rule To Crack Down On Freelancing https://t.co/LW0Vct7kS2
— Daily Wire News (@DailyWireNews) October 12, 2022
"While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation's most vulnerable workers," Secretary of Labor Marty Walsh said in a statement.
"Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages," he added.
After Biden’s Department of Labor proposed a rule change to expand rights for gig workers, Uber, Lyft & DoorDash stock plummeted.
There’s no better proof that gig companies’ business model is built on exploitation of workers. pic.twitter.com/oxnS52d40u
— More Perfect Union (@MorePerfectUS) October 11, 2022
Just the proposal caused the stocks of gig companies like Uber and Lyft to plummet, as the rule would dismantle their business model of utilizing independent contractors.