The new rules being promulgated by the U.S. Department of Labor about how to classify gig workers have evoked spirited responses on both sides of the issue. Labor activists want to see gig workers treated as employees, with employers paying a minimum wage, overtime, a portion of a worker’s Social Security taxes, and contributions to unemployment insurance.
Companies that employ gig workers, meanwhile, want to treat them as independent contractors, as this eliminates investing in the assets supplied by the gig worker as well as the risk of overstaffing. How the majority of gig workers themselves feel about it is less clear, but neither alternative is likely to materially improve their lot.
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