WHY THE SHARING ECONOMY IS HARMING WORKERS – AND WHAT MUST...

WHY THE SHARING ECONOMY IS HARMING WORKERS – AND WHAT MUST BE DONE

In this holiday season it’s especially appropriate to acknowledge
how many Americans don’t have steady work.

The so-called “share economy” includes independent
contractors, temporary workers, the self-employed, part-timers, freelancers,
and free agents. Most file 1099s rather than W2s, for tax purposes.

It’s estimated that in five years over 40 percent of the
American labor force will be in such uncertain work; in a decade, most of us.

Already two-thirds 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 – Social Security,
workers’ compensation, unemployment benefits, and employer-provided health
insurance under the Affordable Care Act.

No wonder, according to polls, almost a quarter of American
workers worry they won’t be earning enough in the future. That’s 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 research.

What to do?

Courts are overflowing with lawsuits over whether companies have
misclassified “employees” as “independent contractors,” resulting in a
profusion of criteria and definitions.


We should aim instead for simplicity: Whoever pays more than
half of someone’s 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’s 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’ve received from all the jobs you’ve taken
over the preceding five years. With income insurance, you’d automatically
receive half the difference for up to a year.

It’s possible to have a flexible economy and also provide
workers some minimal level of security.

A decent society requires no less.