New report highlights innovative policies the New York City Council can adopt to strengthen rights, protections, and benefits for gig workers
City Hall, NY -- For Labor Day 2016, New York City Council Member Brad Lander released a new policy report identifying challenges facing workers in the gig economy, and outlining concrete steps that New York City can take to protect gig workers from wage theft and discrimination, as well as longer term efforts to offer portable benefits and a framework for worker organizing.
Since 2005, the “gig economy” has grown dramatically, as companies have sought to shed costs and employer responsibilities. From 2005 to 2015, the number of workers engaged in “alternative work arrangements” (independent contractors, freelancers, temps, on-call, and contract workers) grew by 9.4 million, while the number of traditional employees declined slightly. From graphic designers, to models, to temps, to for-hire drivers, studies show that between 16% and 40% of all workers earn their checks “by the gig” rather than by a traditional hourly or weekly wage. There are an estimated 1.3 million freelance workers in NYC alone.
While these arrangements can bring flexibility, convenience, and lower prices, it is too often workers who bear the cost. Typically classified as independent contractors, gig economy workers lack the rights, protections, and benefits of traditional employees, making it far more difficult to piece together a decent standard of living. More than 70% of freelancers report that they have been victims of wage theft or late payment. Others face discrimination with little recourse. And the IRS estimates that millions of workers have been misclassified as independent contractors when they are truly employees, and thus denied health benefits, retirement security, or paid leave. Read more »