Misclassifying employees as gig workers creates 'a race to the bottom' for businesses, Biden's top labor and antitrust regulators say
Gig work is hot, but it's not fair for either workers or employers, top labor and antitrust regulators say.
It's an example of the"whole of government approach" to policy issues spearheaded by the Biden administration, where federal agencies with different statutes can address the same issues from their respective angles, Jennifer Abruzzo, general counsel of the National Labor Relations Board, explained on May 4 at American Economic Liberties Project's Anti-Monopoly Summit in Washington, DC.
Under the National Labor Relations Act of 1935, Congress gave employees the right to organize as a union and collectively bargain with their employer to improve wages and conditions and level the playing field between employees and employers, Abruzzo explained. "If someone is an employee, they get the panoply of rights under various statutes. And if they're not an employee, they get none. They get no protections," she said.
Misclassifying employees as contractors"puts high-road employers" — who pay higher wages, provide benefits like paid leave and workplace flexibility, and offer training to workers —"at a competitive disadvantage," she said.
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