Rideshare and delivery group asks Biden nominee to explain her position on worker classification

WASHINGTON Reuters - A trade group representing rideshare and delivery companies such as Uber and Lyft is asking President Joe Biden's nomination to lead the U.S. Department of Labor, Julie Su, to explain her position on worker-classification rules.

The Flex Association sent a letter to Biden on Monday asking that Su explain how she would implement a proposed rule that would make it easier for workers to be considered employees rather than independent contractors, or gig workers, in a manner that protects independent work. The group said earlier this month Su's record is troubling and that she needs a thorough review of her record in the Senate confirmation process.

In October, the Department of Labor proposed a rule that would make it more difficult for companies to treat workers as independent contractors, which would shake up ride-hailing, delivery and other industries that depend on gig workers.

The push to lobby against it is picking up momentum this year and the final rule is expected to be in place this year.

The federal and state labor laws, such as those requiring minimum wage and overtime pay, only apply to a company's employees, which can cost companies up to 30% more than independent contractors, according to studies.

Biden urged the U.S. Senate to confirm Su's nomination earlier this month and praised his past work to increase worker wages and expand protections.

The White House and the Department of Labor did not respond to a request for comment.