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FTC places new rules on gig employers

Uber-NYC Taxis
Posted at 1:20 PM, Oct 27, 2022
and last updated 2022-10-28 07:24:33-04

Millions of Americans are part of the gig economy. The number of workers continues to grow especially as inflation forces more people to take on side jobs.

Now the Federal Trade Commission said it will be cracking down on companies who take advantage of gig workers.

It says gig workers are facing many issues including deception about pay and hours and unfair contract terms.

“Whereas individuals have very little power, authority, and incentive to pursue wages if they think they've been misclassified as an independent contractor, for example, a penalty, a civil money penalty from the FTC carries with it tremendous potential risk,” said Laura Lawless, partner with Squire Patton Boggs.

Potential fines are a new thing that could get employers’ attention.

The FTC said it will hold companies accountable for claims about costs and benefits to workers. Including how they're using artificial intelligence to manage pay, performance and work assignments.

Lawless said it's important for you to report any issues.