Labor secretary weighs in on 'gig economy'

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Secretary of Labor Tom Perez is decrying what he calls a “false choice” between worker protections and innovation during a conversation about the bnurgeoning "on-demand economy". Companies like Uber and Taskrabbit have built their businesses by using independent contractors instead of employees. Contractors don’t get the same benefits as employees, so they cost the companies less. Critics say that in some cases, the workers are closer to employees than contractors.

“Our current law provides a useful framework for understanding the rights and responsibilities of workers and employers,” Sec Perez said. “I am concerned that some observers have framed a false choice of protecting workers OR promoting innovation in today's economy.” The Department of Labor recently announced new guidelines meant to crack down on worker misclassification across the economy.


Labor secretary weighs in on 'gig economy'