Independent contractors, freelancers, consultants. These workers have slowly risen up the ranks as backbones of many companies, yet when it comes to traditional labor rights, they’ve consistently come up short. When the IRS and the Department of Labor cracked down on solidifying the blurred lines between employee and independent contractor, it seemed inevitable that new benefits would be filtered into these “non-employees.”
And in America’s growing gig economy, those benefits are vital—from recouping expenses, to paid leave, and importantly, healthcare. What the ACA has done—and we’ve all read many a case study on the subject—is allowed 30+ hours a week to set the bar for qualifying for healthcare benefits.
It’s a relatively new phenomenon as mobile app services like Uber have found themselves woven into lawsuits where their drivers who were classified as “independent” yet spend countless hours on the clock on behalf of Uber with seemingly no benefits beyond a paycheck. Other countries like the United Kingdom have thoroughly investigated how to handle their respective gig economies and the conclusion has been to provide equal benefits, as employees and contractors alike are more than likely engaging in equal work.
But there is no ACA in the UK, and there may no longer be one in the USA in the near future in view of President-Elect Trump’s stated plans to repeal the ACA. So just when we are beginning to learn how to care for workers who are employees if not by name, we may be starting all over again. It’s a fear that many Americans are currently facing, whether as an employee or as an independent contractor. While many employers typically offer< healthcare coverage to their employees, not so for their independent contractors.
Repealing the ACA means that benefits will no longer be required for independent contractors who are in reality employees. Further, it means that those contractors may have to tack on another gig to pay the inevitably escalating monthly premiums to come, particularly as a repeal may undo the affordability requirement. Those big businesses that utilize their “independent” services will no longer have to dig into their pockets to pay for their healthcare and regard them as employees, despite their output.
The gig economy is confusing to some, especially in the age of technology. It’s a market comprised of Americans taking on multiple tasks. Maybe a part-time office job here, an Uber shift there. Perhaps an Etsy store to make up the difference. And while some find that type of schedule nerve-inducing, others find comfort in piecing together a paycheck that not only pays their bills but ensures some work will pop up in the event that one of their many gigs end.
The numbers in these situations are growing steadily, as reflected in a joint survey between Harvard and Princeton economists. From 2005 to 2015, a 6% increase in unconventional employment happened from 10% to 16%, while traditional employment saw no significant increase. These figures are also without those who hold a full-time traditional job and a small independent gig on the side. Those people make up 55 million Americans, up 2 million from 2014, per a survey from Freelancers Union and Upwork, a non-profit organization.
For the first time in 12 years, the Bureau of Labor Statistics will be conducting a survey of their own to see just how many Americans are enmeshed in the burgeoning gig economy. Kristin Sharp, Executive Director for the Shift Commission on Work, Workers and Technology, estimated that the independent workforce will rise to 50% from 2020 to 2025, including those taking part in small independent gigs on the side. Should hard stats reflect that the American population is leaning heavily toward a gig economy, perhaps President Trump will find a way to provide these workers with the proper healthcare they have earned and continue to earn.
