Uber, Lyft Tumble as U.S. Proposes Rules for Workers

Shares of


Uber Technologies

Lyft


and


DoorDash


traded sharply lower Tuesday after the U.S. Department of Labor issued a rule proposal that could force the companies to classify their drivers as employees rather than contractors.

If implemented, that rule would likely substantially raise labor costs for food-delivery and ride-sharing companies, and for other employers that rely heavily on contract workers. Interested parties have 45 days to comment on the proposal.