The Gig Economy: The Risk vs. Rewards and Approach to Compliance

Worker classification issues surrounding gig workers came to the forefront with the passage of AB in California and the current pandemic situation. On the one hand, AB5 forces many California companies to classify gig workers as employees and provide them with the full array of benefits. On the other hand, the recent economic situation highlighted the vulnerability of gig workers, who normally would be ineligible for unemployment compensation as independent contractors. The multitude of gig workers created the recognition of this exposure, and the pandemic rescue legislation (CARES Act) gave them eligibility.  This issue is not just limited to California. Other states are pursuing similar approaches.  So far, this issue has focused on an all-or-nothing situation. Is there a possibility for an alternate structure?

Learning Objectives:

• Gain a comprehensive understanding of the risks of engaging gig workers.
• Review an action plan to use to implement an all-in approach of managing gigs and monitoring future events.
• Discuss implementation guide/steps for operational considerations.
• Hear about alternate total compensation offerings for GIG workers to assist in offering cost-effective, competitive and compliant programs.