Labor Law and the Gig Economy: Why Stick with an Antiquated System?

Joe Kennedy March 20, 2016
March 20, 2016

Ross Eisenbrey and Lawrence Mishel argue in a recent paper that current labor law is appropriate for gig platforms that match workers with consumers. Joe Kennedy points out in Innovation Files that this ignores the central arguments about these platforms. First, the current employee-independent contractor distinction is an outdated relic of common law torts that provides little guidance to companies or workers. Second, gig platforms can easily change their business models to avoid having their workers classified as employees. Finally, current law actively discourages these companies from providing workers with help such as training, business planning, and tax filing.