Raising the floor for workers in the gig economy

When freelance film producer Elizabeth MacKenzie was stiffed out of $2,500 she was owed by a client, she couldn’t cover utilities or rent. So her power got turned off, and she lived on bread rolls and water.

Mauricio Niebla and his colleagues worked for months on a new elementary school reading program. Although publishing giant Houghton Harcourt Mifflin paid their employer, Inkwell Publishing, more than $300,000 for the work they had done, Mauricio and his team never saw a cent.

When distributor Craftmatic denied Kimberly Brown work after she objected to a racial slur, her case was dismissed because, as an independent contractor, she was not legally protected from discrimination.

Meanwhile, recent data analyzed by BuzzFeed and the Washington Post suggests many Uber drivers are earning far less than meets the eye.

As we observe Labor Day 2016, our worker protection laws are failing the growing number of workers in the gig economy.

In the last 10 years, we’ve seen a significant increase in the number of workers engaged in “alternative work arrangements.” From graphic designers to models to temps to for-hire drivers, studies show that the number of workers who earn their pay “by the gig” (rather than by a traditional hourly or weekly wage) has grown by 50 percent over the past decade. There are an estimated 1.3 million freelance workers in New York City alone.

While these arrangements can bring flexibility, convenience, and lower prices, it is too often workers who bear the cost. More than 70 percent of freelancers report that they have been victims of wage theft or late payment. Others face discrimination with little recourse. And the IRS estimates that millions of workers have been misclassified as independent contractors when they are truly employees, and thus denied health benefits, retirement security or paid leave.

Our economy has changed rapidly, but our state and federal labor laws – partly as a result of partisan gridlock in Washington and Albany – have failed to keep up.

As a result, too many workers in the gig economy lack the rights, protections and benefits of traditional employees, making it far more difficult to piece together a decent standard of living. And overall, these workers are more likely to be younger, Latino, and lower income than traditional employees.

Fortunately, New York City can help lead the way in raising the floor for workers in the gig economy. In a new policy report my office released today, we’ve outlined some of the key challenges and opportunities for progress.

To start, we can protect independent workers from wage theft by passing the “Freelance Isn’t Free Act” (Intro 1017), which provides a right to full and timely payment, along with new tools for enforcement. Developed in partnership with the Freelancers Union, the new law – the first of its kind in the country – will help workers like Elizabeth MacKenzie and Mauricio Niebla collect their hard-earned pay.

We can also clarify the New York City Human Rights Law, to make clear that protections against employment discrimination apply to independent and contingent workers (Intro 1016), so workers like Kimberly Brown will be protected from discrimination.

In the longer term, we can help provide gig workers with benefits and a framework for organizing and collective bargaining.

This month, Councilman Corey Johnson will introduce a bill authorizing the New York City Taxi and Limousine Commission to establish a “driver benefits fund.” The fund would offer health benefits to for-hire drivers (yellow cab and Uber alike), paid for through a modest per-ride surcharge. Such a model could be used to offer portable benefits in other sectors as well.

The report also examines the need to establish new frameworks for gig workers to organize and bargain collectively – whether through a model recently adopted by the Seattle City Council, through innovative “sectoral organizing” models, or other new approaches.

Our goal this Labor Day is to support all of New York City’s workers, whether they are traditional “W-2” employees, freelancers, contingent workers, domestic workers, day laborers, temps or interns.

We are proud of the work we’ve done, in partnership with Mayor Bill de Blasio, to raise the floor for traditional employees. Together, we’ve expanded paid sick days, raised wages for low-income municipal employees and city-contracted social service workers, and created the new Office of Labor Standards and Policy. (There’s plenty more to do for traditional low-wage workers, of course, especially in retail and service jobs where far too many still earn far too little, or face unpredictable, part-time schedules with no benefits).

Now, we also have an opportunity, and a responsibility, to make sure that our system of workplace rights, protections, and benefits covers the growing number of freelancers, temps, and contingent workers as well.

This Labor Day, let’s make sure that workers across New York City know that their labor will be respected and protected by our local laws, whether they are paid by the week, by the hour, or by the gig.

Brad Lander is a New York City Council member representing the 39th District in Brooklyn.