GIG workers

Some definitions are based on the work arrangement: the contract or relationship

between workers and the individual or company who pays them. Traditional workers have
a long-term employer-employee relationship in which the worker is paid by the hour or
year, earning a wage or salary. Outside of that arrangement, work tends to be temporary or
project-based; workers are hired to complete a particular task or for a certain period of
time. In some cases, they have an employer, but the company that pays them is different
than the one at which they work. These types of arrangements are often called alternative
or nonstandard work arrangements, and may include freelancing, temp agency work, self-
employment, and subcontracted work.

Other definitions of non-traditional or gig work center on the tax status or legal
classification of workers: the difference between employees and independent contractors.
Employees receive W-2 forms from their employers, who are obligated to provide them
certain benefits, to deduct payroll taxes, and are covered by minimum wage and anti-
discrimination laws. In many cases, temp-agency and subcontracted work is W-2 work, but
the W-2 is issued by the contracting company rather than the company where the worker
reports to work. Independent contractors, by contrast, receive 1099 forms when they
perform services for a company without being a direct employee. Payroll taxes are not
deducted, and neither party is covered by the same rules and regulations that apply to
traditional employees.

Finally, some definitions are based on the nature of work: on what people actually do on
a day-to-day basis. These definitions look at particular characteristics of work, such as
scheduling, flexibility, or lack of direct oversight. Given the diversity of non-traditional
work, these characteristics may be seen as positive or negative.

These different approaches to defining non-traditional and gig work overlap. Those
working in alternative arrangements are often classified as independent contractors with
1099 tax status, and often have unpredictable schedules -- but not always. Therefore,
different definitions lead to different estimates of the gig workforce. Surveys most
commonly ask about work arrangements, but each definition offers important insights into
the gig economy, and findings from all three are presented in the Data Hub.