Independent contractors have gone from side help for employers to the backbone of many companies. The “gig” economy as it’s now called, includes any of said contractors who work within corporations, providing service that is presumably not available through employees. This has since shifted in paradigm, considering many companies simply utilize most as freelancers and contractors for handling work. However, this has created multi-level problems, particularly under the Affordable Care Act.
As employees (including the newly minted business model of mobile app drivers such as Uber and Lyft), working 30+ hours within a given week qualifies them for healthcare. Further, other offerings such as paid leave, expense reimbursement, and holidays have piqued on the gig economy’s radar. We’ve witnessed lawsuits across the country and the pond, as the UK has recently mandated that gig economy workers are entitled to the same rights now as employees.
While this has previously been a case-by-case basis, the Equal Employment Opportunity Commission (EEOC) has now prioritized the gig economy as part of their compliance initiative. While the EEOC made this part of their mission in 2015, a greater emphasis has now been placed on coming to a viable conclusion to address the gig economy impact in conjunction with the DOL. The gig economy, along with anti-discriminatory practices are among the new priorities for the EEOC.
The EEOC’s Strategic Enforcement Plan for fiscal years 2017 through 2021 highlights some points of this initiative. As the gig economy remains under the microscope, its fate is still in the air. While firm decisions have yet to be made, anticipating compliance is still key.