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Gig economy workers: Independent contractors or indentured servants?
Saturday, Jul 30, 2016 08:30 PM AST
We need to stop worker misclassification and the abuse of so-called independent contractors
What if millions of American workers were being denied health insurance, job security and the most basic legal protections, from overtime pay to workers compensation to the right to join a union? What if tens of billions of dollars in taxpayer revenues money desperately needed to address everything from crumbling roads to education to health care were never making it to local, state and federal treasuries? What if thousands of companies were violating the law with impunity?
That is exactly what is happening in the United States today, thanks to a rampant practice known as worker misclassification illegally labeling workers as independent contractors when in fact they are employees under the law. In some cases its occurring in plain sight, in others its more hidden but regardless of the circumstances, it is taking an enormous toll on the country.
According to the Economic Policy Institute (EPI), workers misclassified as independent contractors can be found in nearly every industry, and the phenomenon has grown considerably with the rise of the gig economy. Uber, the ride-hailing company, has become the poster child for worker misclassification, with numerous lawsuits alleging that Uber wrongly classifies its drivers as independent contractors. But Uber is hardly alone examples of worker misclassification can be found in scores of new sectors, from housecleaners to technical workers.
Workers misclassified as independent contractors are also legion in established sectors of the economy, notably residential construction, in-home caregiving and the port trucking industry. Conditions for these workers have been compared to indentured servitude, and for good reason. Misclassification enables employers to get away with widespread wage theft and a range of other illegal practices.
...
What if millions of American workers were being denied health insurance, job security and the most basic legal protections, from overtime pay to workers compensation to the right to join a union? What if tens of billions of dollars in taxpayer revenues money desperately needed to address everything from crumbling roads to education to health care were never making it to local, state and federal treasuries? What if thousands of companies were violating the law with impunity?
That is exactly what is happening in the United States today, thanks to a rampant practice known as worker misclassification illegally labeling workers as independent contractors when in fact they are employees under the law. In some cases its occurring in plain sight, in others its more hidden but regardless of the circumstances, it is taking an enormous toll on the country.
According to the Economic Policy Institute (EPI), workers misclassified as independent contractors can be found in nearly every industry, and the phenomenon has grown considerably with the rise of the gig economy. Uber, the ride-hailing company, has become the poster child for worker misclassification, with numerous lawsuits alleging that Uber wrongly classifies its drivers as independent contractors. But Uber is hardly alone examples of worker misclassification can be found in scores of new sectors, from housecleaners to technical workers.
Workers misclassified as independent contractors are also legion in established sectors of the economy, notably residential construction, in-home caregiving and the port trucking industry. Conditions for these workers have been compared to indentured servitude, and for good reason. Misclassification enables employers to get away with widespread wage theft and a range of other illegal practices.
...
Link: http://www.salon.com/2016/07/30/gig_economy_workers_independent_contractors_or_indentured_servants_partner/
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Gig economy workers: Independent contractors or indentured servants? (Original Post)
inanna
Jul 2016
OP
guillaumeb
(42,641 posts)1. Glad to be the first to recommend.
Some people cite the supposed "convenience" of Uber and Lyft, but the small convenience to passengers is nothing compared to the fact that the code writers who devise the apps become billionaires while the drivers who do the actual work are paid very little and are guaranteed nothing.
There are plenty of articles in the business press about how very few workers are saving enough for retirement. These types of "on-demand" jobs are a contributor to this problem.
awoke_in_2003
(34,582 posts)3. Yep
And the riders aren't protected by any regulations.
Agnosticsherbet
(11,619 posts)2. I would call them independent servants.
Bill USA
(6,436 posts)4. Recommended! this is a must read for a lot of people who are being 'had'.