USA: Legislation supported by Handy to classify gig workers as independent contractors could undermine workers' rights; company responds
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We have worked to find a legislative solution that both classifies independent contractors and allows companies to provide portable benefits to the hundreds of thousands of independent contractors finding work and earning income on platforms like ours. Unfortunately, we have not been met with the same willingness to work together. Since we have been unable to come to a resolution that addresses both issues – providing benefits and clarifying classification – we are supporting legislation that focuses solely on creating a clear test for worker classification in the on-demand sector. By providing clear, objective framework for everyone to follow, this legislation will bring much needed clarity to the law, and enable the on-demand economy to continue to grow, innovative and bring new income opportunities to millions of Americans.
Handy still remains committed to creating a system that will enable companies to provide independent workers with access to benefits, and we are actively engaged in exploring the creation of a benefits pilot program. If at any time anyone has opposed our legislation genuinely wants to work together to find a solution that addresses both issues, we'd be thrilled to do so.
- Related stories: USA: Legislation supported by Handy to classify gig workers as independent contractors may undermine workers' rights; company responds
- This is a response from the following companies: Handy
Author: Lydia DePillis, CNN Money
Should gig economy workers... be entitled to the same rights and benefits as regular employees? Currently they aren't...That frees these companies from having to offer benefits, pay a host of taxes and abide by certain labor laws. Leading the charge is New York-based Handy, an online platform that connects users with home service providers ranging from plumbers to house cleaners. The company has put bills in front of eight state legislatures this year that would permanently classify most gig workers as independent contractors... Defining gig workers as independent contractors will give platform companies the certainty that their business model will hold up to legal scrutiny, Handy argues.
Over the years, many platform companies — including Handy — have been sued for allegedly misclassifying workers as independent contractors. The legal outcomes have been mixed, with many cases settling before a verdict was reached, or awaiting a Supreme Court decision on whether the arbitration agreements most workers signed can be enforced... In blue states, gig economy companies have offered to provide benefits to their workers, but there's a catch. Handy pushed a bill in New York that would have allowed platforms to contribute 2.5% of each transaction to a benefits fund in exchange for a guarantee that the workers would remain independent contractors. Unions and worker advocacy groups opposed the measure, saying it gave away too many rights and protections for workers.