Dive Brief:
- Several related groups are proposing a new model for worker benefits that will be "portable" across the number of jobs they do in the new on-demand economy, according PCWorld.com.
- While that new on-demand model has been cheered by many as an option that lets workers decide to work whenever and however they want to, the main criticism is employers could use the proposal as a way to avoid paying for benefits they would otherwise have to give to employees, the article reported.
- The independent contractor vs. employee debate is being contested in lawsuits across the country, with employers including Uber, Amazon and Lyft being sued by those claiming to be employees, not contractors. The portability of benefits is one idea many sharing economy backers see as a way to give workers the same benefits potential as full-time employees.
Dive Insight:
"Calling workers independent contractors greatly reduces companies’ costs, including the costs associated with being an employer that apply to more traditional companies in their sectors," according to a report released this week by the National Employment Law Project.
The NELP report also said that the flexibility on-demand companies claim they offer workers is only "theoretical," as workers stand to earn less in any case if they work during non-profitable periods. Companies also tend to reward those who make themselves available and penalize those who don't, it said.
Backers of the new plan, such as the Freelancers Union, National Guestworker Alliance and R Street Institute say a "portable" model that would allow workers to be able to take benefits and protections with them in and out of various work scenarios. They quote estimates that as many as 53 million Americans are currently self-employed.
Who will pay for those portable benefits? The groups behind the proposal say several parties need to sit down and sort it out.