Companies and States Clash Over How to Classify a Gig Worker

The gig economy involves millions of US workers who enjoy flexibility but face classification issues. Originating from app-based companies like Uber, the term 'gig' has historical roots in the 1920s. The rise of the internet and apps like Airbnb and TaskRabbit further expanded gig work. However, classifying workers as employees or independent contractors remains contentious, affecting benefits and rights. California's Assembly Bill 5 aims to reclassify gig workers, leading to legal battles. Proposals for a third worker classification and portable benefits are being considered to adapt to evolving work technologies.

What is the estimated number of US workers participating in the gig economy?

• 100 million

• 1.5 million

• 57 million

• 10 million

Which of the following is a characteristic of an independent contractor?

• Fixed working hours

• Receives a salary

• Complete flexibility

• Reports to a boss

What is a major downside of being an independent contractor?

• Mandatory overtime

• No guaranteed benefits

• Lack of flexibility

• Limited job opportunities

Which state is leading the charge in changing how companies classify gig workers?

• Florida

• Texas

• California

• New York

What is the main goal of Assembly Bill 5 in California?

• To provide health benefits to all workers

• To ban gig economy apps

• To reclassify ride share drivers as employees

• To increase gig worker wages

What is one reason app-based companies support a system of portable benefits?

• To limit the number of gig workers

• To ensure benefits stay with the worker

• To reduce worker flexibility

• To increase company profits

What is a proposed solution to address the classification issues in the gig economy?

• A new classification of worker

• Eliminating gig work

• Reducing the number of gig apps

• Increasing taxes on gig companies