The Gig Economy
The gig economy is often more volatile than traditional employment, yet 36% of all workers are involved in the gig economy. (Pew Research) Especially now, how the gig economy is handling COVID-19 is making many gig workers reconsider.
Those who work in the gig economy are independent contractors, online platform workers, contract firm workers, on call workers, and temporary workers. (Gallup) Some of the more well known gig workers are people who drive for Lyft, Uber and other ridesharing services. 49% of all gig workers work part-time, the majority of which drive for ridesharing services. (Pew Research)
Ridesharing Services
In California, these ridesharing services are being challenged by Assembly Bill 5. This bill aims to force companies like Uber and Lyft to protect their workers, giving them the same rights as normal workers. Gig companies like Uber and Lyft are being targeted by the new legislature, under the problem of misclassification. New legislation aims to restrict the way the companies operate as well, aiming to make gig companies give their workers statuses similar to those of traditional employment. Uber and Lyft are fighting Assembly Bill 5, and will most likely fight the upcoming legislature as well.
Due to COVID-19, those who rely on ridesharing services as their source of income are at a severe disadvantage. The CARES act (Coronaviurs, aid, relief and economic security) aims to control the economic damage workers are suffering from. However, undocumented workers will not receive the CARES stimulus relief bonus, some of which are gig workers. This means that those gig workers, especially those undocumented are at a huge disadvantage. Most gig workers cannot afford basic living needs such as food and water without the stimulus bill.
New Rules
Not all companies look to hold gig worker’s rights in the past. Google recently enacted new requirements for their many thousands of independent contractors and temporary workers. Google now requires staffing companies to pay $15 an hour and give health benefits to their workers. These new rules will also require contractors to get 12 weeks of paid parental leave and $5,000 towards education every year. Microsoft also accomplished something similar a year ago.
Looking Forward During COVID19
With the number of in-person workers being 61.5%, how the gig economy is handling COVID-19 has drastically affected those who rely on gig work as their main source of income. (USA Facts) The CARES act can only do so much to reduce the damage done, and the 61.5% are at a massive disadvantage. However, the US government is looking to pass new bills that would allow those affected and those with low income easier access to necessities such as food and water. It is unknown if this bill will pass. For now, those at a disadvantage will have to wait until the new stimulus bill arrives to support themselves and their family.
You can view our documentary on the state of the gig economy during COVID-19 here: https://youtu.be/3LHezbCAmW8