Professional Documents
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nabled by the digital revolution, employers increas-
of laid-off workers must cobble together multiple jobs as indepen- Dog walker John Aron has his hands full in Denver’s
Park Hill neighborhood. Today’s gig economy offers a
dent contractors. On-demand gig workers, such as Uber drivers, lifeline to laid-off workers who must take whatever
part-time jobs they can find, while other independent
workers like the freedom of being their own boss.
are protesting their lack of benefits, while Uber lobbies local and
266 CQ Researcher
The Gig Economy
BY EUGENE L. MEYER
D avid Gandy is an
apostle of the “gig
economy,” the brave
new work world in which
people take temporary jobs
“perma-temps” and indepen-
dent contractors.
To its critics, the gig econ-
omy is exploiting workers and
undermining the national econ-
or work for themselves. He omy by allowing companies
sees this growing sector of to replace full-time employees
the economy as a godsend with cheaper part-timers who
because of the freedom it af- do not get guaranteed hours,
fords self-starters like him. income or benefits. But to its
“It’s good all around,” says defenders, the gig economy is
the 48-year-old Florida native, a savior that, besides offering
who has moved from city to workers flexibility and freedom,
city and job to job as an Uber allows struggling companies
driver, a corporate event pro- to survive and healthier firms
ducer, a caterer, a lighting de- to remain nimble in a com-
signer and a disc jockey. He’s petitive economy.
268 CQ Researcher
it’s just the next step in a decades-old
trend of fragmenting jobs, isolating work- Flexibility Attracts Most Freelancers
ers and driving down wages.” 12
Schedule flexibility and the opportunity to manage oneself were
Other critics say the gig economy
arose largely from the ashes of the primary motivators for three in four full-time freelancers, according
2007-09 recession, when companies to a study by market research firm Edelman Berland. Freelancers
replaced full-time and hourly work also cited being able to choose a work location and to pursue
with on-demand employment beyond professional and personal passions as top reasons for freelancing.
the traditional temp agency or union
hall hiring environment. This greater
Motivations for Full-Time U.S. Freelancers,
use of part-timers, as well as the out- 2014-August
July 2014 August 2015
sourcing of jobs overseas, is contributing 75% 75% 73% 70% 69% 67% 67% 64%
to the shrinking of the middle class
and wage stagnation, they say. 13
For instance, a 2014 Federal Reserve
Bank of Chicago paper found “a strong
association” between slow real wage Have Be own Choose Pursue Pursue Spend Control Earn extra
growth “and marginally attached workers, schedule boss work professional personal more time own money
particularly those working part time in- flexibility location passion passions with friends/ financial
family future
voluntarily for economic reasons.” 14
Countervailing trends appear to be Source: “Freelancing in America: 2015, Results Deck,” Freelancers Union, Upwork
at work, however. Some employers are and Edelman Berland, September 2015, slide 14, http://tinyurl.com/hdqmdqo
moving away from part-time workers Is the gig economy good for shows how valuable an individual is.
in favor of using full-time employees. workers? Many companies now look to these
Hello Alfred, a New York City company After the 2007-09 recession, the stars ‘ultimate professionals’ to solve problems
that provides a range of personal butler- seemed aligned, or crossed, depending their full-time teams can’t. Or they save
type services to clients, pays employees on one’s job needs. Unemployment money by hiring ‘top-tier experts’ only
$18 an hour, plus benefits, to those peaked at 10.1 percent, not counting for particular projects.”
working at least 30 hours weekly. Com- so-called “discouraged” workers who While recognizing the challenges,
pany officials say full-time workers are had given up looking for work. Layoffs Horowitz of the Freelancers Union notes
better able to build a sense of com- were rife, and job prospects were grim in her book, The Freelancer’s Bible, that
munity and customer loyalty. 15 for many people, including new college “freelancing is a fluid work medium
Munchery, an on-demand company graduates. that rewards nimbleness and flexibility.
that prepares and delivers food in San On the other hand, the resulting When it’s working well, there’s no better
Francisco, Los Angeles, Seattle and gig economy seemed like a great op- feeling.” It’s all about opportunity —
New York, formerly classified its drivers portunity for those needing work. As and of security and sustainability (savings
as independent contractors, with no technical consultants, freelance writers, on clothes and meals, for example),
overtime, unemployment insurance, dog walkers or temp workers stocking leverage (freelancers banding together)
workers’ compensation or other ben- warehouse shelves or answering and camaraderie in having a community,
efits. But in 2013, it reclassified them phones, they could earn cash and per- she writes. 19
as employees to stanch turnover and haps develop entrepreneurial skills Gig proponent Gandy, too, cites the
ensure a steady workforce. 16 while enjoying flexible hours and more benefits of independent work. “A lot
And with unemployment falling and freedom than a traditional 9-to-5 office of traditional benefits we get [from
the labor market seemingly tightening, job offered. companies] in a lot of ways are holding
some employers, notably Walmart, are “Today, consulting or freelancing for us back” by stifling the entrepreneurial
raising the wages of full-time employees five businesses at the same time is a impulse. But with tax breaks and write-
to stem turnover and reduce hiring badge of honor,” writes Micha Kaufman, offs offered to business entities such
and training costs. 17 a writer about the gig economy, entre- as sole proprietorships and limited li-
As workers, businesses, economists preneurs and the future of work and ability corporations, he says, “I like the
and others debate the gig economy, the CEO and co-founder of Fiverr, an prospect of what’s going on.”
here are some of the questions under online marketplace for on-demand work- A study for Uber, the ride-hailing
discussion: ers and persons needing services. 18 “It service, also supports the sunnier view
270 CQ Researcher
allowing employers to cut costs and the exact same employees,” according relationship, to avoid problems stem-
boost profits, say supporters. Shedding to an account of the transaction. 27 ming from high turnover and rehiring
employees, they say, has made for Similarly, LP&G, a public relations and retraining costs.
stronger and more nimble companies, firm in Tucson, Ariz., let go 88 percent Other on-demand companies, such
relieving them of the responsibility for of its staff and then brought them back as San Francisco-based Instacart, are
providing a range of benefits, some as freelancers working out of their adopting a blended model. The online
mandated by law, others by tradition. homes, with no benefits. 28 food delivery service determined its ex-
“Companies typically pay part-time Other examples abound. In a Cali- clusive use of independent contractors
employees an hourly wage and can fornia survey of 300,000 contractors, was resulting in poorer service. In 2015,
schedule them for whatever number two-thirds said they had no “direct em- after three years in business, it joined
of hours the company desires,” says ployees,” so labor-related costs — such with supermarkets to embed full-time
the website Small Business. 24 as payroll taxes or workers’ compen- employees in stores to do the shopping
The reported benefits extend far be- sation insurance — were reduced by while the contractors made deliveries.
yond U.S. shores. “There is a huge army 30 percent. 29 “We’ve seen a cadre of workers who
of well qualified people out there who Such cost-cutting permits companies are better, have fewer issues than we
would be prepared to work, and to to satisfy shareholders and boost stock used to see before in terms of missed
work hard, if they could only work on values and executive compensation, items, bad produce,” said Nikhil Shanbhag,
a flexible part-time basis,” says Duport,
a British firm that advises businesses
on such matters. 25 “In fact, it is not un-
common for part-time workers to do as
much in their shorter day or week than
a full-time worker on the same staff.”
In the traditional model that pre-
272 CQ Researcher
Other experts call for “portable
benefits,” an extension of a practice
long common in the union trades.
Gig economy critic Hill suggests creating
Individual Security Accounts (ISA), into
which every business hiring an inde-
pendent worker would pay. The worker
then would use the ISA “to buy that
274 CQ Researcher
Chronology
1952 stock exchange to soar before the
1880s-1913
The union movement emerges.
President Harry S. Truman seizes tech market goes bust, causing
control of the steel industry to avoid numerous companies to close.
a steelworkers’ strike.
1886 2007
American Federation of Labor is 1954 Zimride (later renamed Lyft) offers
formed. Union membership peaks at 34.8 per- on-demand rides with drivers who
cent of nonfarm U.S. workers. own their cars and bear gas and
1892 other expenses.
Violent steelworkers strike in 1955
Homestead, Pa., deals blow to CIO and American Federation of 2007-09
labor movement. Labor merge to form AFL-CIO, rep- Steep recession spurs layoffs and
resenting some 15.5 million workers. downsizing at many large corpora-
1913 tions, forcing formerly full-time
Henry Ford introduces the auto • workers to enter the “gig economy”
assembly line. in search of short-term jobs.
Continued from p. 274 In October 1929, the stock market two decades later. Autoworkers at the
Ford went further, returning some crashed. By 1932, stocks had lost 80 Flint, Mich., plant of General Motors staged
of his profits to employees in the form percent of their pre-crash value; a year a sit-down strike, setting a precedent for
of the $5 workday, which the com- later, a staggering 25 percent of the peaceful civil disobedience in labor disputes
pany’s website describes as “a signif- nation’s workforce was unemployed, and, later, in the civil rights movement.
icant wage at the time, to enable his as businesses failed and banks closed. The Depression gave rise to Presi-
employees to buy the vehicles they Jobless World War I veterans, seeking dent Roosevelt’s New Deal programs
built. The move created loyalty among accelerated payment of a bonus they and laws intended to provide a safety
Ford workers and is credited with giv- were scheduled to receive in 1945, net for workers. Foremost among them
ing rise to a new middle class of con- marched on Washington in 1932. There were the National Labor Relations Act,
sumers unencumbered by geography, they were routed, their shanty town which guaranteed the right of workers
free to travel the open roads, to live on the Anacostia River flats burned to bargain collectively, and the Social
where they please and chase the Amer- down by Army troops under the com- Security Act, intended to provide a
ican dream.” 53 mand of Douglas MacArthur, who modest retirement annuity to retired
achieved fame in World War II as a workers, funded by employers and em-
general in the Pacific theater. ployees through a payroll tax. Both were
Boom, Bust The Great Depression gave rise to a enacted in 1935.
gig economy of sorts, as hobos climbed The onset of World War II ended
276 CQ Researcher
AFP/Getty Images/Brendan Smialowski
rates range from $55 to $495, depending on the length of a
lease and what’s included. 3
Its members include graphic designers, writers, photographers,
business consultants and filmmakers. And 24/7 access means
“you can work Christmas Day or at 2 in the morning,” she
says. Creative Colony’s amenities include a social calendar filled
with events and a mock phone booth for private calls.
Melissa K. Smith is renting space in Make Office’s bullpen.
The 36-year-old is CEO of Phoenix Filming, a startup company The Cove co-working space in Washington, D.C., is part
she co-founded last year that deploys drones to make aerial of a growing network of shared office environments
videos. She says she likes “the exposure to different companies spawned by the gig economy.
at different levels of startup, the daily interaction with people,
the great networking.” She has 10 independent contractors scattered As for the future of co-working, Rahbar says, “Everything
around the country working for her remotely. has a ceiling, but that ceiling is a faraway place right now.”
Smith is hoping for a separate office at Make Offices, but
— Eugene L. Meyer
more than 500 people are on a waiting list at the company’s
various sites, according to Rahbar.
1 “A Snapshot of Coworking in America,” Modworks Coworking, April 30, 2015,
Creative Colony, a much smaller operation with about 39 http://tinyurl.com/jce9gmh.
“members,” has no waiting list, but word has gotten around. 2 “First Results of the New Global Coworking Survey,” deskmag, Nov. 20, 2015,
The company has had inquiries from other states on its expansion http://tinyurl.com/htm27kc.
3 Creative Colony, http://tinyurl.com/gqrxrzr.
plans, but right now its focus is local, according to King.
for the first time in what had been Commonly, employers provided a safety Their use also undercut the security
traditionally men’s factory jobs. net of pensions and health insurance for of full-time workers.
With peace in 1945 came the so- long-term employees, many of whom A 1987 stock market crash may have
called peacetime dividend: Pent-up con- spent an entire career at a single company. been a harbinger of harder times to
sumer demand fueled construction of But the huge costs of the Vietnam War come, but its impact was only short-
new homes for returning GIs and the and President Lyndon B. Johnson’s “Great term. During the stock market frenzy
production of cars, televisions and other Society” social programs ignited inflation that took hold after the crash, large
consumer goods. Veterans attended col- and helped lead to economic turmoil in private corporations went public, and
lege in large numbers for free on the the 1970s. profits that formerly rewarded employ-
GI Bill. Women receded from the work- To break the back of inflation, the ees and paid for expansions were di-
force, but unemployment was low and Federal Reserve Board raised interest rates verted to buying back stock to raise
wages were rising. to as high as 20 percent, which helped corporations’ market price.
At the same time, the union move- trigger a severe recession in 1981 and During the extended postwar period
ment suffered a setback in 1947 with ’82. Once again, unemployed workers hit that lasted into the 1980s, writes Jerry
passage of the Taft-Hartley Act, which the road in search of jobs; camps of the Davis, a professor of management and
strengthened the hand of management destitute sprang up, mostly out of sight sociology at the University of Michigan,
in collective bargaining. President Harry — from the outer suburbs of Washington, “American corporations became model
S. Truman chose not to invoke the law D.C., to the outskirts of Forks, Wash., a long-term employers,” serving “a critical
in 1952, when, under an executive order, lumber town fallen on hard times. function in providing pathways to eco-
he seized control of the steel industry This period also saw the rise of nomic security and mobility. . . . A
to avoid a steelworkers’ strike he deemed temporary employment agencies that corporate job was a good job, with a
detrimental to national security while provided on-demand workers to com- chance to move up in the world.” 55
Americans were at war in Korea. 54 panies with short-term or occasional But the pathway came to a crossroads
During this time a robust middle class needs. Some firms used perma-temps, as the 20th century neared its end.
expanded, which helped keep the national a practice unions protested, since these In the 1990s, investors increasingly
economy rolling along into the 1960s. workers lacked protections and benefits. judged companies by their quarterly per-
formance, pressuring executives to further available only for academia and gov- liferation of startup companies and high-
slash costs. Workers bore the brunt of ernment under the control of the Na- flying investors seeking to profit from
this, as companies replaced traditional tional Science Foundation, was opened the new technology. The boom, during
pensions with “defined” benefits with to individuals and businesses. 56 which the technology-dominated Nasdaq
401K plans, in which workers’ make The Internet “makes it much easier stock exchange index soared from 1,000
pretax contributions to a retirement fund to find and outsource the many busi- to 5,000 in five years, went bust in 2000,
that the employer invests at the employ- ness tasks you need to complete,” ac- but its effect on all but a small class
ees’ direction. Employers also shifted cording to Conversational Receptionists, of high-risk investors was muted. Cellular
more and more health insurance costs a North American firm that provides phones, meanwhile, began morphing
to workers as premiums rose. receptionist services. “Often, when you into “smart” phones, capable of running
outsource, you will pay for the work applications that allowed users on the
instead of paying by the hour or a go to conduct business transactions over
Path to Gig Economy full-time salary for an employee to the Internet.
provide the work.” 57 Otherwise, the economy that had
278 CQ Researcher
addresses the many challenges that freelancers face.
On the political front, however, the Freelancers Union successfully
lobbied New York City in 2009 to roll back its 4 percent tax on
unincorporated businesses for those earning less than $100,000.
Through its “Freelancing Isn’t Free” campaign, the union is fighting
for legislation to protect freelancers from late or unpaid fees owed
them. 6 Horowitz also has advocated a business-funded account
so under President George W. Bush rarely seen since the Great Depression. One survey of 10 major urban areas
— until December 2007. In 2009, even as many Americans were found the number of workers receiving
What then-Federal Reserve Chairman struggling to get back on their feet and IRS Form 1099 as independent con-
Alan Greenspan would call “irrational find permanent employment, there was tractors steadily rose from 2013 to 2014,
exuberance” in both the stock and real an explosion of digitally based companies suggesting a growing trend. 59 But oth-
estate markets deflated badly. The re- — such as Uber, Etsy, TaskRabbit and ers questioned what they called the
sulting mortgage and financial crisis Airbnb — that use the Internet, smartphones “race to the bottom” business model
brought corporate mergers, investment and algorithms to connect providers and that produces workers without guar-
house bankruptcies and bank closures consumers. Some hailed their rise as the anteed hours, income or benefits. 60
and bailouts. Millions of homeowners’ new “sharing economy,” promising more Yet, advances in artificial intelligence
mortgages were foreclosed; home values freedom and flexibility for workers eager and algorithms could enable robots to
that had risen sharply during the bubble to become entrepreneurs. replace workers. Automation has already
fell sharply. Families lost their homes “Listen to the optimists, and the Great dispensed with the need for many sec-
and jobs, and their retirement savings Recession and its aftermath sounds like retaries, bank tellers and autoworkers.
evaporated. Unemployment reached a great opportunity,” writes Scott Timberg Some analysts have forecasted a new
10.6 percent in May 2009 — a level in his 2015 book, Culture Crash. 58 industrial revolution of “autonomous in-
SITUATION It speaks to the fact so many people wages and hiring more workers. “The
are willing to take part-time jobs, casual economy is as strong as it has ever
work, because they don’t have the op- been here,” said Dave Rozenboom,
tion to get a full-time paying job.” president of First Premier Bank in Sioux
The numbers appear to bear him Falls, S.D. “It’s a very tight labor market,
The Economy out. According to the American Staffing and we continue to hire.” 66
Association, although many jobs have
280 CQ Researcher
At Issue:
Is the “gig economy” here to stay?
yes
yes no
U.S. Government Accountability Office said “the size of the work for all or part of a day. The only difference is that the
contingent workforce can range from less than 5 percent to gig economy operates over the Internet and involves workers
more than a third of the total employed labor force.” The Bureau in a wider range of occupations, some relatively skilled.
of Labor Statistics has found little increase in the size of the However, just as some day-labor companies hope to profit
contingent workforce, but Harvard economist Larry Katz cites by evading regulations and cheating workers, many gig econ-
evidence that the bureau’s estimate is “missing a large part of omy companies hope to legally skirt labor laws that apply to
the gig economy.” So, different methodologies are producing other employers.
different conclusions. The survival of gig economy companies depends on the
Yet it is clear that the old New Deal economy and its safety overall state of the economy. It is no accident that the gig
net are crumbling for millions of U.S. workers, both those in economy exploded following the recent steep recession.
the traditional economy and those trying to succeed in the gig More than eight years after the onset of the recession, the
economy. The competitive advantages for a business using economy is still down more than 3 million jobs from trend
such non-regular workers can be substantial: Labor costs can levels.
be reduced by 30 percent or more if a company does not If we pursue policies designed to weaken the labor market,
have to pay workers benefits. such as higher interest rates from the Federal Reserve Board,
Even many regularly employed, part-time workers are being we likely will continue to see large numbers of workers des-
subjected by employers to various tactics aimed at reducing perate for employment from Uber, TaskRabbit and other gig
labor costs and increasing flexibility. One — known as “just-in- economy companies. In a bad economy, irregular work is
time scheduling” — means that part-timers are basically on-call, better than no work.
subject to job insecurity, low pay and little-to-no safety net. The survival of the gig economy also depends on whether
Given that reality, worker categories should not be defined governments will apply labor laws to gig economy companies.
too rigidly because there is a lot of overlap in terms of work- There is no reason Uber should be exempt from minimum-
ing conditions. We are going to find that more and more wage laws, overtime regulations and workers’ compensation
workers exist simultaneously in multiple worker categories — coverage. If the company’s claim is true — that compliance is
regular part-timers with a weak safety net who supplement too difficult to figure out — then companies that are more
those jobs with various gigs: for instance, being an Uber driver adept with technology will outcompete Uber. But if gig econ-
and/or Instacart grocery deliverer, still with no safety net, plus omy companies are exempt from rules that apply to their
taking on other mini-gigs and perhaps a second part-time job. competitors, gig companies will be allowed to thrive in a very
They might even work in the “gray economy” doing under-the- weak labor market.
table work off the books. We have to begin thinking of “work” Of course, there is a place for the type of casual labor that
for more and more workers as existing along a spectrum of fills gig economy advocates’ stories. There are people who
different types of employment situations. would like to earn some extra money in their spare time. If gig
How will all of this look in the labor statistics? Will we be economy companies can provide more opportunities for such
able to count this complexity, using current methods? We work, that would be great. But there is no reason this cannot
desperately need to figure out better methodologies, because be done in a way that complies with existing labor laws.
these new ways of work are not going away.
no
282 CQ Researcher
accused you of not having a clean car. Harris and Krueger of Brookings’ However, a 2013 study at Oxford
They started to tighten the rope. Gradually, Hamilton Project, who are former top University predicted that “47 percent
we can’t breathe anymore.” 81 Obama administration officials, have sug- of total U.S. employment is in the high-
gested “a new legal classification” for risk category” of being automated, pos-
independent workers that would provide sibly within two decades. 85 Most are
Oct. 2, 2012, http://tinyurl.com/gn5og4l. Capitalism,” The New York Times, July 11, 2015, workers is stirring up a legislative fight,” Los
10 “The Mobile Workforce: More productive, http://tinyurl.com/q6rsfm5. Angeles Times, May 7, 2014, http://tinyurl.com/
efficient, and healthy,” Microsoft, Nov. 12, 2013, 24 Neil Kokemuller and Demand Media, “Advan- l5qqgy3.
http://tinyurl.com/hhw2rrj. tages & Disadvantages of a Part-Time Employees,” 40 Cynthia Poole, “Steady Growth Continues:
11 “What Is the Gig Economy — and How Chron.com undated, http://tinyurl.com/6nexl6w. Staffing and Recruiting Industry Outpaces the
Does It Impact Employees?” T Sheets, undated, 25 “What are the benefits of employing part- Economy and the Labor Market,” American
http://tinyurl.com/zyaehf2. time workers?” duport, April 2006, http://tiny Staffing Association, September 2015, http://tiny
12 Laura Clawson, “This week in the war on url.com/zrw4wj9. url.com/go6vaz4.
workers: The new piecework economy,” The 26 Philip L Rones, “Response to Recession: 41 Richard J. Reibsteine et al., “The 2015 White
Daily Kos, July 26, 2014, http://tinyurl.com/jlepru5. Reduce Hours or Jobs?” Monthly Labor Review, Paper on Independent Contractor Misclassi-
13 See Steven Greenhouse, “Our Economic October 1981, http://tinyurl.com/j7tasjt. fication: How Companies Can Minimize the
Pickle,” The New York Times, Jan. 12, 2013, 27 Claire Gordon, “How Employers Can Legally Risk,” Pepper Hamilton LLP, April 27, 2015,
http://tinyurl.com/jm5ebv7. Strip Your Job of Benefits,” AOL Jobs, April 27, http://tinyurl.com/h5y68fp (See: V. Legislative
14 Daniel Aaronson and Andrew Jordan, “Un- 2012, http://tinyurl.com/hvy9m7m. Initiatives).
derstanding the relationship between real 28 Brian Pedersen, “Employees Turned into 42 “Independent Contractor Misclassification Im-
wage growth and labor market conditions,” Contract Workers at Tucson PR Firm,” Arizona poses Huge Costs on Workers and Federal and
Federal Reserve Bank of Chicago, October Daily Star, March 18, 2009, http://tinyurl.com/ State Treasuries,” National Employment Law
2014, http://tinyurl.com/h8xreoj. zm99hoa. Project, July 2015, http://tinyurl.com/zw3hnpn.
15 Oscar Perry Abello, “This ‘Gig Economy’ Firm 29 James Surowiecki, “The Underground Re- 43 Lawrence Mishel, “Gigs and robots, oh my!”
Prefers to Have Employees, Not Contractors,” covery,” The New Yorker, April 29, 2013, http://tiny Yumpu, Oct. 29, 2015, http://tinyurl.com/hmf8xc3.
Next City, Aug. 5, 2015, http://tinyurl.com/h2urjjr. url.com/jhx8fms. 44 Horowitz, op. cit., p. 8.
16 Noam Scheiber, “A Middle Ground Between 30 Scheiber, “A Middle Ground Between Con- 45 Robert S. Gould, A Jazz Lexicon (1964),
Contract Worker and Employee,” The New York tractor Worker and Employee,” op. cit. pp. 123-124.
Times, Dec. 10, 2015, http://tinyurl.com/hbz3ce2. 31 Mike Isaac, “Delivery Startups Face Road 46 Geoff Nunberg, “Goodbye Jobs, Hello ‘Gigs’:
17 Sarach Nassauer, “Wal-Mart Broadens Pay Bumps in Quest to Capture Untapped Market,” How One Word Sums Up A New Economic
Increase,” The Wall Street Journal, Jan. 23, 2016, The New York Times, Feb. 12, 2016, http://tiny Reality,” NPR, Jan. 11, 2016, http://tinyurl.com/
p. B1. url.com/hbybahz. hxkv8yo.
18 Micha Kaufman, “The Gig Economy: The Force 32 Abello, op. cit. 47 “AFL-CIO: A Brief History,” The Social Welfare
That Could Save the American Worker?” Wired, 33 For more information, see Patrick Marshall, History Project, http://tinyurl.com/hemrb8a.
September 2013, http://tinyurl.com/jp5qbg7. “Robotics and the Economy,” CQ Researcher, 48 “American Federation of Labor,” USHistory.
19 Sara Horowitz, The Freelancer’s Bible (2015), Sept. 25, 2015, pp. 793-816. org, http://tinyurl.com/8xy8rex.
pp. 2, 10-11. 34 Jillian D’Onfro, “Travis Kalanick says Uber 49 For background, see “The Homestead Strike,”
20 “Uber: The Driver Roadmap” Benenson Strat- needs self-driving cars to avoid ending up like The American Experience, PBS, http://tinyurl.
egy Group, January 2015, http://tinyurl.com/ the taxi industry,” Business Insider, Oct. 21, 2015, com/atcns. Also see “Homestead Strike,” His
gkrjmt8. http://tinyurl.com/pz5fg9h. tory.com, http://tinyurl.com/ccmlska.
21 Robert Reich, “Why the Sharing Economy 35 Harris and Krueger, op. cit., p. 5. 50 “Remembering the 1911 Triangle Factory Fire,”
url.com/jle9e9n. Doesn’t Need to Regulate the Sharing Economy,” Safety and Health Administration, http://tinyurl.
22 Jeffrey Pfeffer, “The Case Against the Gig Wired, Oct. 22, 2012, http://tinyurl.com/h2lgd62. com/zgp7zpw.
52 “100 Years of the Moving Assembly Line,”
Ford, http://tinyurl.com/hphfu32.
About the Author 53 Ibid.
54 “Executive Order 10340: Directing the Sec-
Eugene L. Meyer, a former Washington Post reporter and
retary of Commerce to Take Possession of
editor, has contributed reports on media ethics and the rise
and Operate the Plants and Facilities of Certain
of citizen journalism to the Center for International Media As- Steel Companies,” The American Presidency
sistance. In addition, he has written articles for, among other Project, April 8, 1952, http://tinyurl.com/hzp
publications, The New York Times and U.S. News & World mxde.
Report and is editor of the quarterly B’nai B’rith Magazine. 55 Jerry Davis, “Capital markets and job creation
His most recent book, Chesapeake Country — Second Edition, in the 21st century,” Center for Effective Public
was published in March 2015. Management at Brookings Institution, Decem-
ber 2015, p. 2, http://tinyurl.com/go6rm68.
284 CQ Researcher
56 The National Science Foundation, the primary
World?” Conversational Receptionists, http:// Brookings Institution, 1775 Massachusetts Ave., N.W., Washington, DC 20036;
tinyurl.com/guyjgvs. 202-797-6000; www.brookings.edu. Center-left think tank whose wide-ranging mis-
58 Scott Timberg, Culture Crash: The Killing of sion includes fostering the economic and social welfare of all Americans.
the Creative Class (2015), p. 73. Chapter 3, pp. Center for Economic and Policy Research, 1611 Connecticut Ave., N.W., Suite
73-83, “Of Permatemps and Content Serfs” specif- 400, Washington, DC 20009; 202-293-5380; https://cepr.net. Left-leaning think tank
ically addresses the challenges facing “all citizens that promotes democratic debate on the most important economic and social is-
of Freelance Nation.” sues affecting people’s lives.
59 Joshua Reeves, “The Rise of the 1099 Econ-
omy [Infographic],” Gusto.com, Dec. 11, 2014, Economic Policy Institute, 1333 H St., N.W., Suite 300, East Tower, Washington,
DC 20005-4707; 202-775-8810; www.epi.org. Liberal think tank that focuses on the
http://tinyurl.com/gq9qloj.
60 Dartagnan, “The Sharing Economy is Just needs of low- and middle-income workers.
Another Race to the Bottom,” Daily Kos, July 26, Freelancers Union, 408 Jay St., Brooklyn, NY 11201-5150; 718-532-1515; www.free
2015, http://tinyurl.com/zubo6h3, lancersunion.org. Advocates for the self-employed and provides networking oppor-
61 Klaus Schwab, “The Fourth Industrial Revo- tunities for its nearly 300,000 members; also markets health, life and disability in-
lution: What It means, How to Respond,” World surance policies.
Economic Forum, Jan. 14, 2016, http://tinyurl. National Employment Law Project, 1601 I St., N.W., Washington, DC 20006;
com/hmllz82. Also see “The Collaborative 202-887-8202; www.nelp.org. An advocacy organization for low- and minimum-
Economy Sets the Stage for Autonomous In- wage workers.
novation,” Crowd Companies, undated, http://
tinyurl.com/jauzv2v. R Street Institute, 1050 17th St., N.W., #1150, Washington, DC 20036; 202-525-
62 For peak unemployment, see Andrew Sum 5717; www.rstreet.org. A conservative, coalition-building think tank dedicated to
et al., “The Great Recession of 2007-2009: Its
free market solutions.
Post-World War II Record Impacts on Rising
Kansas City Star, May 22, 2015, http://tinyurl. 78 Uberlawsuit.com contains links to complaint
Unemployment and Underutilization Problems
Among U.S. Workers,” Center for Labor Market com/zfxke55. against Uber. See p. 5 of Douglas O’Connor,
71 Megan Geuss, “Uber drivers are employees, Thomas Colopy, Matthew Manahan, and Elie
Studies, June 2009, http://tinyurl.com/hdmtewe.
For January 2016 unemployment, see Nelson California Labor Commission ruling suggests,” Gurfinkel v. Uber Technologies, Inc., http://tiny
D. Schwartz, “Wages Rise as U.S. Unemploy- ArsTechnica, June 17, 2015, http://tinyurl.com/ url.com/hwy6ldj.
htmrzee. 79 Tracey Lien, “Meet the Attorney Suing Uber,
ment Rate Falls Below 5%,” The New York
72 Daniel Beekman, “Seattle first U.S. city to Lyft, GrubbHub and a dozen California Tech
Times, Feb. 5, 2016, http://tinyurl.com/jsow293.
63 Chuck Ross, “Bernie Sanders Says ‘Real’ give Uber, other contract drivers power to Firms,” Los Angeles Times, Jan. 24, 2016, http://tiny
Unemployment Rate Is Actually 10.5 Percent, unionize,” The Seattle Times, Dec 14, 2015, http:// url.com/h6srv62.
tinyurl.com/h5b3jpt. 80 Sarah Kessler, “The Gig Economy Won’t Last
DOUBLE The Official Rate,” The Daily Caller,
73 Taylor Soper, “Uber asks City of Seattle to Because It’s Being Sued To Death,” Fast Com-
with video, July 6, 2015, http://tinyurl.com/
jv3c3gp. follow 4 ‘key principles’ when crafting driver pany, Feb. 17, 2015, http://tinyurl.com/m2b9
64 Poole, op. cit. union law,” Geekwire, Feb. 29, 2016, http://tiny pop.
65 “The Slow Recovery of the Labor Market,” url.com/zs5ou3y. 81 Noam Scheiber, “Uber Drivers and Others
74 According to the Freelancers Union, 71 per- in the Gig Economy Take a Stand,” The New
Congressional Budget Office, February 2014,
p. 2, http://tinyurl.com/h5mh5vc. cent of freelancers will experience late or non- York Times, Feb. 2, 2016, http://tinyurl.com/
66 Schwartz, op. cit. payment for work during their career. The zkqps7p.
67 Rosalind S. Helderman, “Uber pressures bill, introduced Dec. 7, 2015, can be found 82 Harris and Krueger, op. cit.
authorize ride-share services,” The Denver Post, Oct. 6, 2015, http://tinyurl.com/oyh2ru4. “The Future of Employment: How Susceptible
77 Noam Scheiber, “Budget Seeks to Ease Economic Are Jobs to Computerisation?” University of Ox-
April 29, 2014, http://tinyurl.com/zfumg26.
70 Bryan Lowry, “Uber is back in Kansas after Fears for U.S. Workers,” The New York Times, ford, Sept. 17, 2013, http://tinyurl.com/oj67kae.
Feb. 9, 2016, http://tinyurl.com/hf2jhql. 86 Kaufman, op. cit.
Gov. Sam Brownback signs bill into law,” The
286 CQ Researcher
The Next Step:
Additional Articles from Current Periodicals
Benefits Startup cleaning company Homejoy closed in July 2015
amid a weak investment funding round after four former
Hempel, Jessi, “Gig Economy Workers Need Benefits workers filed separate lawsuits against the company charging
and Job Protections. Now,” Wired, Jan. 4, 2016, http://tiny it had classified them as contractors rather than employees.
url.com/hhc9e8o.
Seattle lawmakers and members of Congress propose legislation Farivar, Cyrus, “Woman sues startup Handy, says she
that would give gig economy workers access to health in- was paid $14 for working over 30 hours,” ArsTechnica,
surance, job benefits and collective bargaining rights. July 9, 2015, http://tinyurl.com/q6du9uf.
Workers for housecleaning startup Handy sued the company
Weise, Elizabeth, “No more independent contractors for in federal court for requiring them to work to pay off initial
this gig economy startup,” USA Today, Jan. 21, 2016, supply costs without classifying them as employees.
http://tinyurl.com/jx4dhdb.
San Francisco-based cleaning company Honor made its Stangler, Cole, “Lyft ‘Dodges A Bullet’ In Worker Lawsuit,
workers, all of whom were independent contractors, full- But Uber May Not Be As Lucky,” International Business
time employees with benefits to create more stable client Times, Jan. 28, 2016, http://tinyurl.com/hcj8apz.
relationships and improve worker training. Ride-hailing company Lyft agreed to pay $12.3 million in
a settlement with drivers who sued the company in federal
White, Jeremy B., “Laborers in modern economy drive court for not classifying them as employees.
legal, political battle over the nature of work,” The
Sacramento Bee, Feb. 8, 2016, http://tinyurl.com/zhnasj2. Temp/Staffing Agencies
A California Assembly member proposed a bill that would
allow gig workers to bargain with companies for benefits, Kessler, Sarah,“A Look At The Temp Agencies Of The Future,”
a proposal that ride-hailing company Lyft has supported in Fast Company, Oct. 16, 2015, http://tinyurl.com/ja67zuj.
part by endorsing “portable” benefits that workers could Staffing startups such as Wonolo and BlueCrew allow em-
retain while working for multiple companies. ployers to hire temporary workers on-demand using smart-
phone apps, rather than through staffing agencies.
Income
Scheiber, Noam, “Labor Department Clarifies Employment
Barker, Tim, “Piecing together a living through the Gig Guidelines,” The New York Times, Jan. 20, 2016, http://
Economy,” The St. Louis Dispatch, Sept. 6, 2015, http://tiny tinyurl.com/jrr2jxn.
url.com/hcp5vg3. The U.S. Department of Labor issued guidance on when a
Americans without full-time jobs who support themselves company working with a temp or staffing agency is liable for
through the gig economy can risk forgetting to save for re- violating labor laws and which entity — the company or the
tirement or pay taxes. agency — must pay for employees’ recovered wages in disputes.
DiStefano, Joseph N., “The gig economy changes work life CITING CQ RESEARCHER
under the radar,” The Philadelphia Inquirer, March 6, 2016,
Sample formats for citing these reports in a bibliography
http://tinyurl.com/jl8matw.
Most people who use apps to rent out their homes or pick up include the ones listed below. Preferred styles and formats
a passenger generate only a small share of income through these vary, so please check with your instructor or professor.
services, according to a report by Wells Fargo’s chief economist.
MLA STYLE
Zipkin, Amy, “The Sharing Economy Attracts Older Jost, Kenneth. “Remembering 9/11.” CQ Researcher 2 Sept.
Adults,” The New York Times, Sept. 25, 2015, http://tinyurl. 2011: 701-732.
com/j4x4xzw.
Many retired Americans are arranging gig work through online APA STYLE
platforms, rather than by taking part-time jobs, to make money
Jost, K. (2011, September 2). Remembering 9/11. CQ Researcher,
or to stay active while maintaining flexible schedules.
9, 701-732.
Lawsuits CHICAGO STYLE
DeAmicis, Carmel, “Homejoy Shuts Down After Battling Jost, Kenneth. “Remembering 9/11.” CQ Researcher, September
Worker Classification Lawsuits,” Re/Code, July 17, 2015, 2, 2011, 701-32.
http://tinyurl.com/pyltu8f.
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