Tuesday, February 9, 2021

Congress Reintroduces Labor Relations Bill That Could Upset Uber (UBER; LYFT)

 The Protecting the Right to Organize Act of 2019 was passed by the House in the last Congress but went nowhere in the Senate. It has been re-introduced in the new Congress. Here's the press release.

And while most of the commentary has focused on the bill's effect on "right-to-work" laws and benefits for labor unions there is a provision that strikes directly at the so-called "gig economy":

....(2) EMPLOYEE.—Section 2(3) of the National Labor Relations Act (29 U.S.C. 152(3)) is amended by adding at the end the following: “An individual performing any service shall be considered an employee (except as provided in the previous sentence) and not an independent contractor, unless—

“(A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact;

“(C) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.”.....

Combine that with the double top in Uber's stock: 
 

and things could get interesting.

Or not.

Who knows? But it's worth being aware of. 

Yesterday the stock closed at $59.29, in this morning's late pre-market action it is changing hands at $58.84 down $0.45 (-0.76%)