The gig economy has been a hot topic of debate in recent years, with progressive politicians pushing for more regulations to protect workers. However, these efforts may not align with the desires of gig workers themselves. Many on the left argue that America is filled with “bad jobs” in the form of part-time gig work and that more “good jobs” with full-time roles and benefits are needed.
California led the charge in 2018 with Assembly Bill 5, which aimed to reclassify many workers as employees rather than independent contractors. The hope was that this would lead to more full-time roles with benefits. However, the result was quite the opposite, with many freelancers and contractors losing their jobs. This backlash led to a 2020 referendum exempting rideshare drivers from the law.
Despite the failure in California, the Department of Labor recently issued new standards for classifying independent contractors, making it harder for workers to remain contractors. Acting Labor Secretary Julie Su defended the rule by arguing that it protects workers from exploitation. However, this narrative overlooks the fact that many gig workers actually prefer their status as contractors and value the flexibility it provides.
In reality, the idea that the gig economy is filled with workers trapped in exploitative part-time roles is inaccurate. In fact, many gig workers choose this type of work for the flexibility it offers. Rather than pushing for reclassification, a better solution would be to create a portable benefit system for independent workers. This system could provide funds for gig and contract workers to purchase benefits like health insurance through worker-controlled benefit exchanges.
By respecting the desires of gig workers and providing them with the benefits they need, a portable benefit system could offer a more balanced approach to regulating the gig economy. It would avoid the economic fallout seen in California and have the potential to appeal to lawmakers on both sides of the political spectrum. Ultimately, it is essential to listen to the voices of gig workers themselves and provide them with the support they truly need.
