Classification of Gig Economy Workers: Not Music to Companies’ Ears

CDF partner Lindsay Ayers authors the article "Classification of Gig Economy Workers: Not Music to Companies’ Ears," for Money Inc. on April 29, 2019.

"Short for the word “engagement,” in the past, the term “gig” was more often used to describe the temporary work of a musician. However, today, the term “gig economy” is commonly used to describe the new free market system where companies use independent workers for temporary, project-based, and freelance work, for example, with app-based companies like Uber, Lyft, and Postmates.

The gig economy is not only here to stay, but is growing. Part time gig work now accounts for approximately 25% of the American workforce and is expected to grow to 40% by next year. While some take on gigs as a means to supplement the income they might earn from their main job, recent reports indicate that about a third of workers now engage in freelance and short-term gigs as their main source of income. Due to the growth of this free market system, the gig economy has been in the spotlight for how companies classify its workers. Recent trends in this area may not be music to employers’ ears."

To find out why and what employers should do, click HERE.