Recent statistics show that over 90 percent of Americans would consider freelancing or working as independent contractors. While most gig workers earn relatively less than employees, working in the industry comes with some perks, such as a great work-life balance and autonomy.
Gig Worker Risks
But, working in the gig economy is not all bliss. Some of the workers in the industry are exposed to many risks. While most assaults on gig workers for companies such as Uber, InstaShoppers, Lyft, and Amazon Flex delivery workers increased during the pandemic, there have always been cases of assaults on delivery drivers.
Besides assaults, being on the road for gig workers in the transportation industry means being at the risk of getting into an accident.
Unfortunately, injuries suffered by a gig worker while on the job are not compensable under the workers’ compensation insurance because of the workers’ classification. Gig workers are classified as independent contractors.
Worker Classification
According to the IRS, if the payer has no control over how or when a worker works, then the person is an independent contractor. If an employer has relative control over the worker, then the worker is an employee and must be classified as such. Misclassifying an employee is a federal offense, so you may want to be careful not to get on the wrong side of the law.
If a worker is an employee, they have all the benefits of an employee. Such benefits include workers’ compensation for injuries suffered on the premises or the road as long as they are engaged in a work-related activity. Also, the employer will be liable for damages caused by their employees should the employee cause an accident.
Independent contractors are largely on their own when they get into an accident. However, a few select companies, such as Uber, DoorDash, and Postmates, offer some benefits to their employees. If the company you work for does not offer benefits to their gig workers, you may be required to pay for damages from out-of-pocket money.
Options for Recovering Damages
If another driver causes an accident, you could file a claim against them and recover damages. But if you are at fault, you may turn to your insurer for third-party and vehicle damage.
However, you may need to consult your insurer before starting work as a gig driver because your insurer may not cover some activities. Also, you may want to buy a personal injury protection cover that can help take care of your injuries on a no-fault basis.
The Future of the Gig Economy
As the gig economy continues to grow, there may be better times ahead for gig workers as the government seems keen on changing employment policies to expand employee benefits to cover gig workers.
According to Labor Secretary Marty Walsh, the Biden administration is looking into circumstances that would warrant the classification of gig workers as employees to ensure consistency across the board. Currently, employers have the option of choosing whether to accord benefits to their gig workers or not.
But, according to business experts, reclassifying gig workers would mean killing the gig economy. “Most gig workers are in it because of the freedom it affords,” says workers’ compensation lawyer Scott Silberman of Silberman & Lam, LLP. Reclassification of gig workers as employees could mean that gig workers lose their autonomy and have to work under the control of their payers.