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There is a significant shift underway in United States labour laws, which could have major implications for the Gig Economy. This will not only impact the US labour market, but it has the potential to disrupt other regions as well. What is the Gig Economy? The gig economy, as many are already experiencing, refers to a labour market characterised by short-term, freelance, or temporary jobs, often facilitated through digital platforms or apps like Zomato, Ola, or Blinkint. In this setup, individuals work on a per-project basis, known as "gigs," rather than holding traditional, long-term employer-employee contracts. This arrangement means that drivers for Uber, for example, are not considered employees of Uber but act as independent contractors. Consequently, Uber, as a company, is exempt from taking measures typically associated with employees, such as providing Provident Funds, Gratuity, or adhering to laws regarding termination. Labour unions perceive this as a blatant violation of labour laws, while the industry views it as providing people with the flexibility to work only as much as they want. What's happening in the US? In the United States, the Department of Labor (DOL) recently released a final rule that will make it more challenging for companies to classify workers as independent contractors. This rule alters how the DOL determines whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. Contractors who are in business for themselves don’t qualify for the same minimum wage or overtime pay protections afforded to employees, among other rights under federal labour laws. The rule is scheduled to be officially published in the Federal Register on Wednesday and will go into effect on March 11. Opponents of the rule, including business and industry groups, could delay or kill the measure by challenging it in court, as they did with an earlier Biden administration effort to change worker classification standards. The US Chamber of Commerce announced its opposition to the final rule and said it was considering all options, including litigation. Interesting times ahead! #gigworker #gigeconomy #labourlaw #employement #employers #employee

Is the current regime renewing the government’s war on independent contractors and freelancers? Proposed new labor rules will make it more difficult for companies to utilize (and pay people as) independent contractors. This will absolutely push up labor costs (and quite possibly reignite inflation). With 40% of US workers working as independent contractors, this move could also have a dramatic impact on employment. Given the existing weaknesses and toxicities in US labor markets, a government action which potentially reduces employment hardly seems like sound policy. https://lnkd.in/gQFpzBbM

Exciting developments in the ongoing employment classification puzzle! The U.S. Department of Labor's new rule on independent contractors could be a game-changer for certain employers. Starting March 11, companies must consider six key factors, including control over work, opportunity for profit or loss, and the worker's skill level. This move aims to ensure clarity and fairness for both workers and employers. The gig economy, freelancers, and consultants may see significant impacts. If you’re organization has workers in these areas reach out for a quick check in on potential impacts. #EmploymentLaw #IndependentContractors #DOLUpdate https://lnkd.in/didTkVye

NEW RULES FOR GIG WORKERS IN BC New regulations are coming into effect on September 3rd, 2024 for employees of ride-hailing & delivery companies. The new regulations are introducing the following: - Minimum wage: $20.88/hr - Expense coverage: $0.45/km for rides, $0.35/km for deliveries - Tip protection, pay transparency, destination disclosure - Fair suspensions, terminations - Workers' comp coverage Read the full article here: https://lnkd.in/gNpp_6hM #compensationandbenefits #salaryincrease #EmployeeBenefits

BC’s new $20.88/hr minimum wage for gig workers – a step forward or a setback? - Higher fees may be passed to consumers. - Gig platforms face profitability challenges. - Workers might gain more benefits beyond wages. - Smaller gig platforms could be impacted. - Higher costs may reduce service demand. - Potential for driving new efficiencies and tech. At Stable, our freelancers already earn well above this rate, but this law raises questions: - Impact on the gig economy? - Fewer opportunities for gig workers? - Balancing fair pay with affordability? The gig economy is evolving. What are your thoughts? https://lnkd.in/g-2bw4WZ #GigEconomy #FairPay #Freelancing #FutureOfWork

Significant changes are coming to B.C.'s Gig industry starting September 3rd. Key takeaways: - New Wage: Gig workers, like delivery drivers and ride-hailing workers, must be paid a new minimum wage. - Clear Pay Info: Companies must clearly explain how wages, tips, and any deductions are calculated. - Worker Classification: The rules help determine if gig workers should be treated as employees, with access to benefits. - Better Worker Rights: The change ensures gig workers get fair pay and more predictable income. - Company Responsibility: Companies must follow these rules, or they could face penalties. Link: https://lnkd.in/gqyiaetW #gigindustry #workforceplanning #HR

In response to the B.C. minimum wage increase for delivery drivers, Uber calls it "unreasonable". The reply from the B.C. Labour Minister was that "these companies can suck it up". Uber says that the regulations will only punish drivers, customers and the businesses that benefit from delivery services. It should be noted that the province of B.C. new labour rules will not apply to other types of gig workers, such as freelance writers, musicians or dog walkers. This further highlights the unfairness to gig-workers and poses the question why the B.C. government can't come up with a solution that includes all gig-workers. #gigeconomy #BC #legislation #gigworkers #deliverydrivers #uber #lyft #doordash #skipthedishes #instacart #freelancers #contractors #fooddelivery #deliveryapps #canadianeconomy #labourministry #hr #hcm #staffingandrecruiting https://lnkd.in/g4SX3DhT

The U.S. Department of Labor (DOL) is implementing a new final rule for determining whether a company should classify workers as independent contractors or employees. The rule considers six factors that evaluate whether an individual economically depends on the employer for work. Read more about the new rule and how it may affect your work relationships with freelancers: https://bit.ly/3T0vcjn

The Department of Labor's new rule aiming to reclassify independent contractors as employees is stirring controversy within the gig worker community. This shift, set to affect various sectors from ride-sharing to delivery services, could grant workers traditional employee benefits, but faces backlash from both employers and labor unions. While the move is intended to bolster worker protections, concerns linger about the increased burden this puts on businesses. Labor unions fear that employers won’t offer these jobs anymore. However, some argue that if employers can't afford to comply with basic labor laws, they should probably reconsider their business models. In the wake of these new regulations, experts suggest erring on the side of caution and classifying contract workers as employees to mitigate legal risks, highlighting the complex challenges of navigating the gig economy.

The classification of gig workers as independent contractors has sparked ongoing debate among employers, contractors and other parties. Recent rulings in the US continue to bring subjects such as worker protections and compensation to the forefront. Many argue that gig workers are vulnerable, lacking essential benefits and protections typically afforded to employees. As the gig economy evolves, it is likely that discussions regarding worker rights and classification will continue to gain prominence. #GigEconomy #IndependentContractors #WorkersRights #GigWorkers #EmployeeClassification #WorkplaceRights #MinimumWage #FlexibilityVsProtection #FutureOfWork https://lnkd.in/dG9XdV9J