http://thelibertarianrepublic.com/labor-department-prepping-to-crack-down-on-uber-fedex-airbnb/
The U.S. Department of Labor joined opponents of the “sharing economy” Wednesday in condemning the new use of contracting as a way to avoid paying employee benefits.
“Misclassification of employees as independent contractors is found in an increasing number of workplaces,” the agency claimed in a report. “When employers improperly classify employees as independent contractors, the employees may not receive important workplace protections.”
Advances in digital technologies have allowed companies like Lyft, Uber, FedEx and Airbnb to use contracting in unique ways. Known as the sharing economy, companies make digital platforms in which individuals can create their own business ventures. Opponents, however, argue these individuals should be classified as employees of the company instead of contractors.
“In addition, many states have acknowledged this problematic trend and have responded with legislation and misclassification task forces,” the agency continued. “Understanding that combating misclassification requires a multi – pronged approach.”
The Labor Department argued those companies are abusing contracting to avoid paying their employees benefits like a minimum wage, overtime compensation, unemployment insurance, and workers’ compensation.
“The Teamsters Union has been leading the fight against misclassification on both the state and federal levels for more than a decade,” Teamsters General President Jim Hoffa said in a statement. “The administrator’s interpretation only reinforces what we have said for years – misclassification must be eliminated.”
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