Labor proposal could upend rules for gig workers, companies

By MICHELLE CHAPMAN and ALEXANDRA OLSON
AP Business Writers

The U.S. Department of Labor is publishing a new proposal on how workers should be classified saying that thousands of people have been incorrectly labeled as contractors rather than employees, potentially curtailing access to benefits and protections they rightfully deserve. The department said Tuesday that misclassifying workers as independent contractors denies those workers protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over businesses, and hurts the economy. Shares of major gig companies such as Uber and Lyft plummeted.