Philadelphia is about to become the first city in the country to approve legislation that would create a portable bank of paid time off for domestic workers. And it could create the model for a similar blueprint that would aid the gig economy workforce if implemented on a wider scale.
As we reported just a few weeks ago, Congress has begun to gather information and consider the “future of work,” with considerable emphasis on the role of the gig economy. Although this emergency economy is growing rapidly, tension is also growing within its ranks. In particular, gig workers are attracted to earning money while maintaining all the flexibility and control they can exercise in these arrangements. But they are not entirely comfortable with the concept of being an independent contractor (IC) if that means they have no fringe benefits, are not covered by the minimum wage, and have no protection from non-discrimination laws. In this way, and in a much truer sense, ICs are “on their own.”
Lawmakers have begun to hold a series of hearings to discuss the “future of work,” and it may be no surprise that the two political parties have differing ideas about how that should impact the gig economy. The House Education and Labor Committee held the first of three such meetings on October 23, aiming to ensure that the law keeps up with modern developments such as automation, artificial intelligence, and the gig economy. While Democratic lawmakers seem to want to increase restrictions on the industry, their Republican counterparts are looking toward more flexible options. According to an article by Jaclyn Diaz of Bloomberg Law, the working subcommittees will recommend specific legislation early next year. What might such legislation look like, and what chances of success might it have?
Good news for Postmates delivery drivers…and for gig economy businesses across the country. The company recently announced that it would offer accident insurance benefits to its entire fleet of independent contractor drivers, providing the kind of safety net that many gig workers crave.
There’s a great story in today’s Bloomberg Law by Genevieve Douglas highlighting the recent trend of states permitting self-employed workers – such as gig economy contractors – to enjoy the fruits of a paid family leave program on a portable basis. This can only be good news for gig economy businesses and the gig economy as a whole. After all, as gig workers are afforded greater opportunities to enjoy the kinds of benefits (with flexibility), the number of well-qualified and higher skilled workers to join the labor pool will only grow.
Stock options, in large part, make some of the biggest public tech companies tick; a means of attracting top talent with the promise of big payouts down the road. In recent years, the gig economy has dominated the landscape in Silicon Valley and those lucky enough to land a job there have seen their personal fortunes grow overnight. Independent contractors, on the other hand – the pillars of the gig economy – have largely been left on the sidelines. That may soon change.
It’s a small step, but at least it’s progress. Federal regulators made it easier this week for gig workers to obtain health insurance on a more cost-effective basis, which should help to shore up the ranks of gig workers and make freelance work a more attractive option for a larger pool of talent.
With one of his last official actions as Secretary of Labor, Thomas Perez published a “Memorandum to the American People” touting his accomplishments over the past four years and providing his suggestions for the incoming administration. Given how diametrically opposed he is to his replacement, you might think the forward-looking portion of the memo would be ignored or recycled without review by Andrew Puzder. But the section on the gig economy repeats two of the most common refrains that we have heard about the evolving workforce and what we might need in the near future, so don’t be surprised if you see some follow-through on these calls to action.