Labor Department says gig workers are contractors, not employees

    The Labor Department weighed in today on a question whose answer could be worth billions of dollars to gig-economy companies as they begin selling shares to the public: Are their workers employees or contractors?

    The department said people finding work through a particular unnamed company were contractors, not employees, The New York Times reports, meaning the company does not have to pay them the federal minimum wage or overtime or pay a share of Social Security taxes.

    Industry officials estimate that requiring gig companies to classify their workers as employees would raise their labor costs by 20 to 30%.

    The letter provides further evidence that the Trump administration is departing from the approach of its predecessor on such questions. Under the Obama administration, the Labor Department issued guidance suggesting that gig workers like drivers for Uber and Lyft were likely to be employees, a stand the department rescinded several months after Mr. Trump took office. Read the full story.

     

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