Uber, Lyft trade group asks Biden’s labor nominee to explain position on gig workers

WASHINGTON (Reuters) – A trade group representing rideshare and delivery companies such as Uber (NYSE:) and Lyft (NASDAQ:) is asking President Joe Biden’s nominee to lead the U.S. Department of Labor, Julie Su, to explain her position on worker-classification rules.

The Flex (NASDAQ:) Association sent a letter to Biden on Monday asking that Su explain how she would implement a proposed rule that could make it easier for workers to be considered employees rather than independent contractors, or gig workers, in a “manner that protects independent work.”

The group earlier this month said Su’s record is “troubling” and called for a “meticulous review” of her record in the Senate confirmation process.

The Department of Labor in October proposed a rule that would make it more difficult for companies to treat workers as independent contractors, which would shake up ride-hailing, delivery and other industries that rely on gig workers.

The final rule is expected this year and the push to lobby against it is picking up momentum.

Most federal and state labor laws, such as those requiring a minimum wage and overtime pay, only apply to a company’s employees, who can cost companies up to 30% more than independent contractors, studies suggest.

Biden earlier this month urged the U.S. Senate to quickly confirm Su and hailed his nominee for her past work to increase worker wages and expand protections.

The Department of Labor and the White House did not immediately respond to a request for comment.