Question

In connection with the gig economy what will be the impact in the workplace because of state and federal laws being implemented?

Answer 1

The rapidly expanding gig economy is not merely a response to changing economic conditions. Here are just a few of the reasons the workers are choosing to work on contigent basis, and companies are choosing to hire more on contigent basis.

Benefits of gig economy for workers:

1.   working on projects for multiple companies simultaneously can help to grow skillsets and expose workers to more opportunities

2.    More independence and freedom to choose when and where to work

3.    Less risk of job and income loss with multiple employers.

4.    In some fields gig workers can earn more.

Benifits of gig economy for corporations

1. Ability to hire experts for service not needed on a regular basis

2. Ability in scaling their workeforce up and down quickly to meet business demand.

3.   Reduced cost of providing healthcare and other benefits.

4.   Lower space costs.

The impact of laws in gig economy.

The workforce in the gig economy face more problems and encounters various legal issues. Some of them are explained below.

1. Redifining work : One legal issue that can spawn many other is the fact that the gig economy is redefining how work occures in the US and even the world. A single individual can work from any point without the need to go to an office or face supervision the whole time.

2. Distruptive industry:   Even if various legal concerns arise through a change in the industry the companiws in the industry still must abide by certain laws. with a change in these laws to provide for more opportunity and more power over completing work outside the standard day or night shift , legal issues will cause administrations and state to reconsider labour and employment matters.

3. Pay and labour: Laws regarding fair pay and labour in the state are legal issues that can arise with the gig economy. The labour laws of the state usually kick in to ensure employees have fair dealings in employment, but the gig workers does not have access to these because the laws are not support to freelance work

4. Taxation in the gig economy: The freelance worker is considered as an independent contractor as considered by the state and company laws. The individual may need to reasearch to tax laws and also contact the Revenue service for paperwork and correct forms because they are not same as when working for a company.

5.   On demand and job security: Another issue that tends to progress against the standard labour law is that the freelance or gig workers is usually on demand all the time. On demand workers usually has certain rules that would apply to protect wages with labour laws

6. Precarious contracts.: The contract agreement can cause precarious situation which each freelancer uses a contractual relationship for work.