Wednesday, November 16, 2022

[NJFAC] Gig economy and its toll

The Biden Labor Department released a proposal on Oct. 11 that could force regulators and courts to reclassify gig workers as employees rather than independent contractors.

The stakes are high – not only is the gig economy devastating its workers, but there are ongoing efforts to expand the model to nearly all American workplaces. The good folks at McKinsey estimate that 36 percent of the workforce (58 million Americans) are gig, contract, freelance, and temporary workers – up from 27 percent in 2016. And the numbers are only growing as inflation forces people to take on a second or third job in order to make ends meet.

Here's a rundown of some of the latest from the gig economy, as well as reasons to be doubtful about 'Amtrak Joe's' efforts to rein in the abuses.....

A June national survey of gig workers from the Economic Policy Institute found the following:
  • 29 percent earned less than the state minimum wage that would be applicable if they were a W-2 service-sector worker.
  • 62 percent  lost earnings because of "technical difficulties clocking in or out," compared with 19 percent of W-2 service-sector workers.
  • One in 5 gig workers went hungry because they could not afford enough to eat. 30 percent used the Supplementary Nutrition Assistance Program, twice the rate of W-2 service-sector workers.
  • 31 percent did not pay the full amount of their utility bills in the month prior to the survey.....

June Zaccone
National Jobs for All Network

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