Uber, Lyft Revenue Accounting Threatened by Gig Worker Proposal

Uber Technologies Inc. has warned in its financial statements for two years that a potential reclassification of its drivers from independent contractors to employees would alter a key calculation it makes when it tallies the top line in its income statement.

A Biden administration proposal released this week that makes it easier for gig workers to be classified as employees threatens to turn that revenue accounting risk into reality.

The method Uber uses to record its revenue every quarter hinges on the assumption that its customers aren’t the end users ordering rides or takeout on their phones—but ...