SALT LAKE CITY — A new proposal by the U.S. Department of Labor could mean higher prices on rideshare and food delivery apps.
Some consumers say prices are expensive enough as it is, while workers in the gig industry say they want more protection.
“I’m literally on a $3 order right now and it’s like six miles,” said Doordash driver Patricia Samaniego. “So we’re basically paying to work.”
The Department of Labor wants to fix that. It filed a proposal Tuesday to turn gig-industry workers into official employees.
“They’re not covered by social security, they’re not covered by worker compensation insurance,” said Peter Philips, a senior labor economist professor at the University of Utah.
Philips said the change in title will ensure drivers make minimum wage and see benefits. He said the app companies prefer the contractor model.
“The reason for that is they don’t want to take responsibility for your health at work or your risk of unemployment or your retirement,” he said.
“If you’re driving and you get in a crash, they will not cover it because you’re an independent worker,” said Samaniego.
If the change takes place, Philips said you should expect costs to go up.
“I don’t like that. I like the independent contractor — I like that they can do whatever they want on their own schedule,” said Uber rider Vincent Lopez. “I say stay independent contractors and keep the prices low. That way everybody gets to win.”
Philips said it could take years for the change to even happen. The state of California tried to make a similar switch, but the initiative failed.
