Reliance on gig economy can create unintentional liability

In 2014, approximately 14% to 20% of the U.S. workforce consisted of independent contractors known as “gig workers.” In 2020, the number increased to approximately 35%. Some sources estimate that by 2023, nearly half the workforce will consist of freelance and independent workers. The gig economy is nothing new, but with the new employment environment introduced by COVID-19, an increasing number of companies are looking for ways to fill labor gaps. In addition to the possibility of remote work, some workers are looking to take advantage of the flexibility offered by gig work, which has become an increasingly popular alternative to traditional work schedules. If your business is interested in using gig workers in a more traditional employment structure, you need to understand how to rely on them without incurring unintentional liability.

What is a gig worker?

As defined by Merriam-Webster, a gig worker is “a person who works temporary jobs typically in the service sector as an independent contractor or freelancer.” Usually, the professions that come to mind are electricians, painters, or mechanics. More recently, however, the role has been widely expanded to cashiers, delivery drivers, and food service workers.

Some of the most popular apps that come to mind include Uber, EatStreet, and Instacart. The companies have started to embrace gig workers as an alternative to part-time employees to fill gaps in scheduling or recruit extra hands during peak hours.

National push for employee-like benefits, classifications