Tatiana Bailey: New rules for the gig economy
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The article discusses the new rules for the gig economy and the classification of workers as independent contractors or employees. It is estimated that 40-45% of U.S. workers are independent contractors, with about 30 million working full-time independently. The Department of Labor rules defining worker classification were repealed by the Trump administration and are now being reinstated by the Biden administration. Independent contractors do not receive federal labor protections like minimum wage, workers' compensation, and unemployment benefits. The gig economy has seen an increase in ride-share and food-delivery drivers, as well as gig workers in healthcare, hospitality, and construction industries. In 2020, companies like Uber fought and won exemptions to reclassify workers as employees, citing loss of work flexibility and increased ride prices. The trend towards gig work is expected to increase due to technological advancements, including artificial intelligence. The new rules for worker classification depend on factors such as job permanence, employer control, and job integration with the overall business. Businesses oppose the reinstated Labor Department rule, while labor unions support it. The author predicts more litigation and potential increased employer costs that could contribute to inflationary pressures.

#GigEconomy #IndependentContractors #EmployeeClassification #DepartmentOfLabor #Rideshare #FoodDelivery #Uber #TechnologicalAdvancements #ArtificialIntelligence #WorkerClassification #LaborUnions #Litigation #EmployerCosts #InflationaryPressures

https://gazette.com/business/tatiana-bailey-new-rules-for-the-gig-economy/article_094f2cd8-fc5b-11ee-9e20-773b6158ac73.html