Labor Secretary Marty Walsh: Some gig workers should be classified as ’employees’
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The gig economy
Tech platforms that employ gig economy workers span the economy, including rideshare services like Uber and Lyft; food and grocery delivery platforms like DoorDash and Instacart; and home service apps like HomeAdvisor, TaskRabbit and Wag.
In 2017, the Bureau of Labor Statistics reported there were 55 million people employed as gig workers — 34% of the workforce — with that number set to rise to 43% in 2020.
The coronavirus pandemic saw a sharp increase in the number of gig workers as many jobs were eliminated due to lockdowns and Americans sheltering-in-place increased the market for on-demand services.
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As these services have become increasingly commonplace, however, regulators and labor advocates have expressed concerns that gig work is often too precarious and lacks the protections that employees are normally entitled to when working for a company.
Proponents of gig work argue gig workers’ contracts are more flexible and empowering than more regulated jobs, a claim that some policymakers have found dubious.
The stocks of major firms that employ gig workers, including Uber, Lyft and DoorDash, took a hit upon the news of Walsh’s comments.
Follow Matthew Brown online @mrbrownsir.