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  • US Labor Secretary Marty Walsh said Thursday he supports categorizing gig workers for companies like Uber, Lyft and DoorDash as employees, sending the companies' share prices tumbling on Wall Street. "In a lot of cases gig workers should be classified as employees," he said in comments confirmed to AFP. "In some cases they are treated respectfully and in some cases they are not and I think it has to be consistent across the board," he said. "These companies are making profits and revenue and I'm not (going to) begrudge anyone for that because that's what we are about in America... but we also want to make sure that success trickles down to the worker." In New York, shares of Lyft dropped nearly 10 percent, Uber fell 6 percent and DoorDash slid 7.6 percent. Walsh's comments appear to indicate the Biden administration's desire to ensure "gig economy" workers enjoy the same social protections as full-time employees, such as unemployment insurance and health insurance. Rideshare companies Uber and Lyft strongly oppose such a move, saying it would undermine their business model. The two companies have never reported a net profit since going public. They have maintained that, according to their surveys, their drivers prefer to be independent contractors, due to the financial benefits and flexible working hours. Last November, Uber, Lyft, DoorDash and other app-based, on-demand delivery services won a battle at the ballot box in California when voters passed a referendum known as Proposition 22 which effectively overturned a state law requiring them to reclassify their workers and provide employee benefits. dho/juj/ybl/acb/leg
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  • US labor chief supports employee status for gig workers
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