In an effort to regularize the work of gig economy professionals, the government has issued a new proposal which will strengthen their rights and privileges. According to Reuters, certain employees will need to classify certain workers as ‘employees’, meaning they’re eligible for minimum wage, additional benefits, overtime pay and new legal protections. While there are some analysts who suggest this will be bad for business and restrict the ability of businesses to hire and pay workers, there are greater indications that these will be positive changes for gig workers, shoring up protections that have always been there but unevenly enforced.
Disability and sickness rights
One demographic that has benefited from the gig economy is workers with disabilities. As one study in the journal of Occupational Rehabilitation notes that irregular work cycles, and flexible working, can benefit those people who are unable to meet the requirements of 9-5 contracted work and are unable to find employers able to make reasonable adjustments. One area in which workers with disability can be impacted is in the rights provided to those with disability. As it happens, people in the gig economy are entitled to the same disability benefits as any other employee – but this has not always been evenly applied by gig economy companies. With the new Department of Labor intention coming into force, there’s a greater chance that workers will be treated fairly and have full access to their entitlements.
Greater FTC protection
With this new focus from the DoL has come the ability of other agencies to enforce rules with greater force. The Federal Trade Commission is one of those agencies and has recently set out their intention to focus on employers who are not meeting their statutory requirements. This will help gig workers further, especially those living with disability or other circumstances that make it challenging for them to fully assert themselves and their rights. There has been outcry from gig companies in response to these proposals, but even that will pass – and some analysts predict that the rule changes will be better for the industry as a whole.
A challenging labor market
The US has a very tight labor market. Job openings have continued to increase without new hires to take them. Companies are going out of their way to increase wages, enhance benefits, and generally be a more attractive proposition – and employees know this. At the same time, thousands of workers are taking on second jobs, as highlighted by USA Today. That means there’s a huge labor pool out there, but that they can also have the pick of the jobs. Better standards and federal impetus will push companies further into providing for their workers, and push up the quality of work.
Legal change is challenging for companies – but good news for workers. While it might not seem like something that can benefit both parties, the federal proposal may actually, amid a tight labor market, strengthen both businesses and workers for years to come.
