UBER - Why Uber Stock Was Down 10.42% in Tuesday Trading
On October 11, Uber stocks fell 10.42%, and the day’s trading session ended with Uber Technologies Inc.’s ( NYSE:UBER ) stock priced at 24.66 per share. The steep drop might be attributed to the new labor restrictions that the Biden administration suggested about gig workers.
The New Plan Before It’s Approved
Under the Fair Labor Standards Act, the United States Department of Labor announced on October 11, 2022, the release of a proposed rule to refresh the department’s guideline on determining whether an employee or an independent contractor (FLSA). The rule that now provides a higher weighting to the extent to which workers exert control over their activities and earning prospects will be replaced once the proposal becomes effective and superseded by the new rule.
When defining the status of an employee, the present proposal will consider some different elements. When attempting to determine whether or not a person is genuinely in business for themselves, it is critical to evaluate the degree to which they are “economically dependent” on a particular organization. Other considerations include the potential for either profit or loss. According to the government, the proposed regulation reduces the likelihood that workers may be incorrectly classified as independent contractors.
Why Uber Stock Is Starting to Feel the Pressure
It is anticipated that the completion of the plan will need a significant amount of time. The public will have the opportunity to comment on the plan for 45 days, with the process coming to a close on November 28, 2022, at 11:59 p.m. ET. However...
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