The Gig Economy and the Increasing Demand for a Third Classification of Worker

Abstract

Workers in the United States have traditionally been categorized as employees or independent contractors. This dichotomy has long been used to determine whether the employer is vicariously liable for a worker’s tortious conduct and whether a worker is entitled to protections and benefits under employment law. With the rise of the gig economy in the United States, the traditional dichotomy of classifying workers as either independent contractors or employees has been under an ever increasing strain. States like California and Washington find that the old employee/independent contractor dichotomy no longer adequately addresses the unique and novel circumstance of gig economy workers in their states. As such, these states have worked with both gig-based companies and labor organizations to find legislative and regulatory solutions. Other countries like the United Kingdom have followed suit by reclassifying workers to adapt to the increase of gig-based work.