04-29-2021, 09:49 AM
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80/20 Rule
Industry Role:
Join Date: Apr 2010
Location: Los Angeles
Posts: 3,051
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U.S. Labor Secretary says most gig workers should be classified as employees
Exclusive: U.S. Labor Secretary says most gig workers should be classified as employees
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Labor Secretary Marty Walsh said most gig workers in the United States should be classified as "employees" deserving of related benefits, in what could be a policy shift that is likely to raise costs for companies that depend on contractors
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His work at the Department of Labor is expected to have a major impact on U.S. workplace laws and regulations, including vigorous enforcement of occupational safety and health rules, overtime payments and proper administration of employee benefit plans.
The U.S. Bureau of Labor Statistics reported in 2017 that 55 million people in the United States were gig workers - or 34% of the workforce - and was projected to rise to 43% in 2020.
Walsh's views on the issue could usher in new rulings from the department, which sets legal guidelines for how employers treat workers. Before his appointment, the Labor Department's Wage and Hour Division (WHD) proposed rescinding a rule adopted in January that would have made it easier to classify workers as independent contractors.
Walsh said the Department of Labor will have conversations with companies that employ gig labor in the coming months to make sure workers have access to consistent wages, sick time, health care and "all of the things that an average employee in America can access."
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Reclassifying gig workers / independent contractors as employees began in the US with California Assembly Bill 5 (AB 5). AB 5 has a 3-prong test to determine if a worker is an employee or independent contractor.
AB 5 – Employment Status
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Assembly Bill (AB) 5 and AB 2257 replaced the common law test with the ABC test to determine whether a worker is an employee or independent contractor in California. The ABC test must be used for the purpose of the Unemployment Insurance Code beginning January 1, 2020. Under the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity meets all three conditions of the ABC test:
(1) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
(2) The person performs work that is outside the usual course of the hiring entity’s business.
(3) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
Note: Workers are considered employees unless proven otherwise. The hiring entity must show that workers meet all conditions of the ABC test in order to classify them as independent contractors, unless there is a statutory exclusion or determination of employment. AB 5 and AB 2257 do not change how out-of-state workers are classified.
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This thread is not a discussion about politics. Please only post replies below if they relate to working in the industry - affiliates, performers, production crew, web designers, writers, etc.
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