Today, the U.S. Department of Labor (DOL) issued a Final Rule to help determine whether a worker should be considered an employee or independent contractor under the Fair Labor Standards Act.
This rule does not materially change the law under which we operate, and will not impact the classification of the over one million Americans who turn to Uber to earn money flexibly. Drivers across the country have made it overwhelmingly clear — in their comments on this rule and in survey after survey — that they do not want to lose the unique independence they enjoy. As this rule is implemented, we look forward to working with the Biden administration and making sure they continue to hear directly from drivers.
Other things to note:
- This rule does not contain an ‘ABC test’ for worker classification.
- There will be a 60-day window before this rule goes into effect.
- DOL officials have repeatedly stressed that the rule is intended to address misclassification of workers in traditional industries, and that it is unlikely to result in any large-scale classification changes.
As for Uber, we will continue pushing in states around the country for models that provide drivers with both flexibility and benefits, like what our CEO outlined in a New York Times op-ed and what is in our Working Together Priorities. For example:
- Prop 22: In California, voters overwhelmingly approved Prop 22 in 2020 with 59% of the vote, ensuring that drivers keep their independent status while gaining access to new benefits and protections, including a minimum earnings standard, a health care stipend for more active workers, and occupational accident insurance.
- WA HB 2076: In Washington state, Uber worked together with Lyft, a local union, and Democrats in the state legislature to pass a bill providing a minimum wage, paid family & medical leave, and other benefits to ridehail drivers while ensuring drivers keep their independent status and the flexibility that comes with it.
- New York State: In November, Uber and New York’s Attorney General reached a landmark agreement to ensure drivers retain their independent status and flexibility while also having access to new benefits and protections, like a minimum earnings standard, paid sick leave, and more.