We know about the problems with the gig economy: workers who drive for Uber,videos wife having sex with husband's bf deliver food for Postmates, and run errands on TaskRabbit don't have health insurance or any other guarantees or benefits from their employers — and their ranks are only growing.
While the growth of gig jobs has gotten lots of attention from major companies, research firms, and startups, national legislators haven't done much about it. (They've had other stuff going on, I guess.)
Democratic Sens. Mark Warner and Suzan DelBene, of Virginia and Washington respectively, are looking to change that. On Thursday they introduced the first federal bill addressing the gig economy.
The bill would establish a $20 million grant fund within the Department of Labor to incentivize states, local governments, and nonprofits to create "portable benefit models" that would provide benefits to the independent workforce.
“Whether by choice or necessity, a growing number of Americans are working without a safety net and have difficulty planning and saving for retirement, health care needs, or on-the-job injuries. The nature of work is changing rapidly, but our policies largely remain tied to a 20th century model of traditional full-time employment,” Warner said in a statement.
“As more and more Americans engage in part-time, contract or other alternative work arrangements, it’s increasingly important that we provide them with an ability to access more flexible, portable benefits that they can carry with them to multiple jobs across a day, a year, and even a career. These incentive grants will accelerate experimentation at the state and local levels to better support a more independent 21st century workforce,” he added.
To be eligible for the $20 million in grants, the benefits programs would have to provide options for retirement savings, workers' compensation, life and disability insurance, sick leave, training and educational benefits, healthcare, and other kinds of benefits. The Department of Labor would also look for models that could be replicated nationally.
The Democratic senators behind the bill got some support from the tech world before they introduced it on the Senate floor.
"We are grateful for Senator Warner’s leadership in addressing the issue of portable benefits for all independent workers. The growing desire for flexibility among many workers has created a need to consider new approaches. A pilot program that encompasses all independent workers is a wise way to explore the development of a portable benefits program nationally, a concept Lyft supports,” Lyft Vice President of Government Relations Joe Okpaku said in a statement.
"Postmates applauds Senator Mark Warner for kicking off a national conversation that both celebrates the on-demand economy as an engine of commerce and economic growth in our communities; and also explores ways to extend a greater degree of financial certainty to those who provide their services on our platform,” Postmates CEO and Co-Founder Bastian Lehmann said in the senators' press release.
The bill was just introduced in the Senate, and it'll take a lot more for it to become law. But legislators are finally trying to deal with the reality of work today, for Uber drivers and freelancers nationwide.
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