Workers In The Gig Economy

The gig economy is an economy that focuses on short-term engagements. In this economy, employees become independent contractors or “micro-entrepreneurs” who work when they want and how they want. This nontraditional work environment is not new to the American economy. In fact, the practice of out-bidding others for jobs can be traced back to the first half of the 20th century (Anderson). However, researchers point to smartphone apps and online marketplaces as the instigators of the sudden growth of the gig economy (Rinehart and Gitis). The gig economy transforms the workforce, affects human resource strategies relating to management and culture, and revolutionizes talent acquisition. Still, how long will this economy last? “[T]he number of workers in the gig economy grew between 8.8 and 14.4 percent from 2002 to 2014. For comparison, overall employment increased by 7.2 percent over the same period…” Independent contractors constitute a significant portion of gig workers, and grew by 2.1 million workers from 2010 to 2014” (Rinehart and Gitis). Workers in the gig economy include independent contractors and …show more content…
Disputes over misclassification have been a problem for some time; in fact, the courts have a precedence of using a factual test in order to settle these. But what do such suits leave at risk in the gig economy? “The very definition of ‘employee’ in a tech-enabled, service-driven 21st century American economy. Gig economy companies do not own cars, hotels, or even their workers’ cleaning supplies. What they own is a marketplace with two sides – [the people who need a job done and those willing to do the job]” (Kessler). It could be that the gig economy is a fad – a going concern, if you will. Yet, with the changing labor laws and the ever-increasing technology, it is more likely that the gig economy is only the beginning of a