Shares of ridesharing app Lyft (NASDAQ: LYFT) are tumbling 10.3% at 11:32 a.m. ET Tuesday morning after the U.S. Department of Labor issued proposed new rules that would force gig economy companies to classify their drivers as employees.
Lyft, Uber Technologies, and DoorDash have been living under the threat of potential federal action for well over a year. After California voters rejected saddling gig economy players with the burdensome regulation in 2020, the Biden administration indicated it would explore imposing the rule nationwide.
A California judge, however, overturned the state ballot initiative in 2021.
Source Fool.com