In some ways, Uber and Lyft are back to square one. Here's more.
For now, the DoL rules will apply a broader series of tests to determine who is a truly independent contractor and who's not. The companies point to the flexibility of rideshare employment, which lets drivers set their own hours, as a sign that drivers are independent contractors.
And that pain has been passed along to drivers, who have seen their pay cut since before the pandemic, said Nicole Moore, president of Rideshare Drivers United in Los Angeles and a rideshare driver herself. The company also disputes Moore's claims. It says driver pay has risen, reaching $37 per what Uber calls a utilized hour. The company's 10-Q filing doesn't disclose an average utilization rate – or percentage of hours a car is carrying passengers while a driver is on the clock – but Sergio Avedian, senior contributor at
"The only reason to be involved in the gig economy is the flexibility," Avedian said, referring to policies that let rideshare drivers set their own hours."Uber's not going to do that and give you employment rights. If you put [health insurance, Social Security taxes and other benefits] in, Uber will go to zero."
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