Gig economy shows future of employment

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What types of jobs are part of the ‘gig economy’ and is it making workers’ compensation obsolete?

We previously blogged about how Uber is at the forefront of the gig economy and challenging the traditional workers’ compensation model. The gig economy has been described as a labor market devoted to short-term contracts and freelance work as opposed to permanent jobs. Individuals working in the gig economy are classified as ‘independent contractors’ and not protected under state workers’ compensation laws.

The United States Department of Labor has an excellent article about jobs in the gig economy. It uses the term ‘gig’ to describe a “single project or task for which a worker is hired, often through a digital marketplace, to work on demand.” Check out the article for pros and cons of this kind of employment.

Occupations in the gig economy are musicians, graphic designers, artists, web developers, software developers, computer programmers, technical writers, interpreters and translators, photographers, and drivers. Even carpenters, painters, and other construction workers are now included.

Michigan law requires employers purchase workers’ compensation insurance for their employees. This 100-year-old law is considered a safety net for people who get hurt in the workplace. Individuals who take jobs as independent contractors open themselves up to significant risks. Getting hurt on-the-job can result in lifetime medical expenses and loss of income.

Unfortunately, some employers do not give people much of a choice. We see companies game the system by intentionally pay wages as non-employee compensation (IRS Form 1099). This is called employee misclassification and is done to save money on insurance premiums. Failing to purchase required workers’ compensation insurance is a criminal misdemeanor. It also unfairly shifts work accident costs to other payers.

Companies like Uber and Lyft have been accused of employee misclassification and several class action lawsuits have been filed. Lawmakers are scrambling to keep up with these technological innovations. We need to make sure workers’ compensation laws are updated and stay relevant for the millions of people who rely upon this important safety net.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.

Related information:

What’s the big deal about employee misclassification?

Photo courtesy of Creative Commons, by osde8info.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.