The Shifting Gig Economy
New Bill Adds Protection and Pay for Gig Workers in California
A new bill in the California Senate may change how people make money doing gigs. Independent contractors may be impacted by this new bill, which is currently pending approval in the state of California. The proposed law came about due to ongoing debate for companies such as Uber and Lyft who currently define their workers as independent contractors and not employees. This has led to issues regarding their treatment, as they are not included in any employee agreements or workplace protection measures.
Lyft and Uber Drivers Now Protected: Laws That Protect Independent Contractors
The senate bill follows a line of thought that gig workers are not treated fairly. Current law follows an “ABC Test” to determine whether a worker is an independent contractor. This test is the result of a California Supreme Court ruling on April 30, 2018, that addressed the practices of a courier company called Dynamex. The ruling instituted this test, which presumes that a hired worker is an employee unless they can prove three factors:
- The worker is not under the control or direction of a hirer
- The worker’s activities are outside the usual operations of the business
- The worker normally performs the same trade or business occupations independent of the hiring company
Legislators in California feel this test is inadequate to protect the rights of gig workers and are taking regulations further with this new bill. AB5 is the new bill which changes the wage and benefit requirements for companies who hire independent contractors. This bill changes regulations related to unemployment insurance, wage orders and welfare. Essentially, this law will now categorize anyone who provides labor or services for pay to be considered an employee. Certain occupations will be exempt from these requirements and some will be subject to it but not until 2023. The goal of this bill is to provide reasonable pay and some assurance of protection for unemployment or welfare services for gig workers.
What is the Gig Economy?
Companies that employee gig workers have exponentially increased in the last five years. There are several classifications of these kinds of workers, including:
- Gig workers
- Flexible workforce
- Non-traditional professionals
- Contract workers
- Independent contractors
A 2017 study by the Bureau of Labor Statistics reports that 3.8% of American workers (almost six million people) in the United States hold contingent or temporary jobs. Similarly, workers who are considered independent contractors or who have alternative work arrangements account for 6.9% of total employment and can include:
- On-call workers
- Temp agency workers
- Contract firm workers
According to the Labor Statistics, independent or non-conventional workers are likely to be:
- Under 25 years of age
- Be attending some kind of school
- Prefer a permanent job (55%)
- Underinsured or not insured
Temp agency or help workers are more likely to be black, Hispanic or Latino. Contract workers are more likely to be men. Median earnings per week for these workers is $685, compared to traditional job earnings, which are an average of $886 per week.
Young and Minority Workers Will Benefit From Changes in the Gig Economy
The Washington Center for Equitable Growth explains that the gig economy has wrongly victimized young or minority workers. From decreased earnings to income instability, many people who are working gigs cannot count on their money or on being well-treated. Other than high-earners, the self-employed are subject to a variety of income challenges that threaten their entrepreneurship and may force them to return to traditional jobs.
How to Make Money in This Economy
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- Why People Struggle With Money
- The 3 Major Shifts That Changed Everything For Me
- Telling Your Money Truth
Rha explains that people live with five root causes of money problems: 1: There is Not Enough - living from paycheck to paycheck - cannot access the abundance - so they live in a constricted state- don’t invest in yourself - in your future - in your vision. Live in fear about where the next bit of money is coming from. 2: I Am Not Worthy - I don’t deserve it…..
Lack of clarity or lack of belief about what you have to offer to the marketplace that is valuable - and/or how it compares with what others are doing. 3: I Might Be Changed - somehow compromised or corrupted - or concerned about - being “over your edge” in terms of what it might take to maintain it. 4: I Am Afraid to Have More - because of how it might change me or what I may have to do to get it and maintain it. 5: I Don’t Think I Want More - I have a fundamental issue with the system of capitalism and therefore I don’t participate unless I am forced to.
- I’m angry about the fact that things I want cost so much
- I don’t feel good taking money for the things I’m offering (guilt or shame) - the work is spiritual/ charitable or by taking money I feel like I’m part of the problem - I think money is evil or people who want it are greedy- so it feels bad to want anything beyond my very basic necessities.
- I want to serve a population that really needs my offering but doesn’t have the money to pay me - I feel frustrated that I need them to pay me - (guilt, shame) - and angry that they can’t have access to this important information.
Can you relate to these feelings? Have you had these thoughts? Rha explains the six core changes you have to make if you want to make more money: #1: Awareness #2: Acceptance #3: Forgiveness #4: New Vision #5: Aligned Right Action #6: Celebration Move the Crowd is here to take people just like you on a journey as you stay true, get paid and do good.
Whether you’ve been affected by the gig economy or just want to make a radical difference in the world around you, join the conversation. We are everywhere you are: FB, IG, LinkedIn, YouTube. Like, follow, subscribe and get involved to hear more of the right messages that move you forward.