How to stop the share economy from harming workers
In this holiday season it鈥檚 especially appropriate to acknowledge how many Americans don鈥檛 have steady work.
The so-called 鈥渟hare economy鈥� includes independent contractors, temporary workers, the self-employed, part-timers, freelancers, and free agents. Most file 1099s rather than W2s, for tax purposes.
It鈥檚 estimated that in five years over聽聽of the American labor force will be in such uncertain work; in a decade, most of us.
础濒谤别补诲测听聽of American workers are living paycheck to paycheck.
This trend shifts all economic risks onto workers. A downturn in demand, or sudden change in consumer needs, or a personal injury or sickness, can make it impossible to pay the bills.
It eliminates labor protections such as the minimum wage, worker safety, family and medical leave, and overtime.
And it ends employer-financed insurance 鈥� Social Security, workers鈥� compensation, unemployment benefits, and employer-provided health insurance under the Affordable Care Act.
No wonder, according to聽聽almost a quarter of American workers worry they won鈥檛 be earning enough in the future. That鈥檚 up from 15 percent a decade ago.
Such uncertainty can be hard on families, too. Children of parents working unpredictable schedules or outside standard daytime working hours are likely to have lower cognitive skills and more behavioral problems, according to new聽.
What to do?
Courts are overflowing with lawsuits over whether companies have misclassified 鈥渆mployees鈥� as 鈥渋ndependent contractors,鈥� resulting in a profusion of criteria and definitions.鈥�
We should aim instead for simplicity: Whoever pays more than half of someone鈥檚 income, or provides more than half their working hours should be responsible for all the labor protections and insurance an employee is entitled to.
In addition, to restore some certainty to people鈥檚 lives, we need to move away from unemployment insurance and toward income insurance.
Say, for example, your monthly income dips more than 50 percent below the average monthly income you鈥檝e received from all the jobs you鈥檝e taken over the preceding five years. With income insurance, you鈥檇 automatically receive half the difference for up to a year.
It鈥檚 possible to have a flexible economy and also provide workers some minimal level of security.
A decent society requires no less.
This article first appeared at
