Intentional employer “misclassification” of workers as “independent contractors,” stripping them of minimum wages, overtime pay, jobless aid, workers comp, and the right to unionize, is not just a “gig economy” problem, two advocates, and a top enforcement official warn.
Instead, it’s an increasing tactic of bosses to degrade and exploit workers from coast to coast. One expert warns if companies succeed in their push to turn all “employees,” now covered by labor law, into not-covered “independent contractors,” the U.S. workforce could turn to a “piece work” society, reminiscent of the garment sweatshops of the 1890s.
The panel, the first of two convened by the Economic Policy Institute, discussed both the report, Misclassification, The ABC Test, And ‘Employee’ Status and the expensive and successful campaign by two of the most-prominent “Gig” firms, the rideshare companies Uber and Lyft, to get California voters to permanently let them misclassify all their workers as “independent contractors.”
But the problem goes far beyond Uber and Lyft and far beyond California, EPI reports.