Not So Fast, Uber.

In November 2020, California voters were duped into believing that Uber drivers and other gig workers needed the “freedom” to work as independent contractors.

It turned out that Proposition 22 only guaranteed $5.65 an hour to workers, according to a University of California study. The workers also lost the right to unemployment benefits, Workers Compensation protections, and other employment benefits.

That’s what a $200 million dollar media blitz can buy a billion-dollar corporation – a change in the law so they can pay poverty-level wages to their workers and maximize profits.

Enter Biden’s new labor secretary, Marty Walsh, who announced on April 29, 2021, that many gig workers should be classified as employees under US labor law.

Although Federal Law permits individual states to enact legislation regarding workers’ rights, Walsh is expected to vigorously enforce the Department of Labor’s wage protections, which may ultimately benefit California’s gig workers.

“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” Walsh said.

Walsh went even further – he wants to make certain that gig workers have access to “consistent wages, sick time, health care, and all the things that an average employee can access.”

Wow. 

Facing the prospect that the Department of Labor may restore gig workers’ wages and benefits, Uber, Lyft, and DoorDash stocks tumbled shortly after Walsh’s announcement.

Apparently, Wall Street recognizes the “jig may be up” for app-based gig schemes.