The gig economy has changed how people work, with more individuals turning to freelance or on-demand jobs. Yet, these changes raise questions about how workers’ compensation applies to gig workers. Current workers’ compensation laws may not fully cover gig workers, leaving them vulnerable after workplace injuries.
Gig workers and independent contractor status
Most gig economy workers, such as rideshare drivers or delivery couriers, are classified as independent contractors rather than employees. This distinction makes a big difference in eligibility for workers’ compensation benefits. Independent contractors do not qualify for workers’ compensation under traditional employment laws. Employers do not have to provide benefits, leaving gig workers responsible for their medical bills and lost wages if injured on the job.
Limited protections under current laws
Current workers’ compensation laws lag behind the rapid growth of the gig economy. These laws were designed to protect traditional employees, not independent contractors. Some states are making efforts to extend protections to gig workers, but progress is slow. Without consistent policies, most gig workers have limited or no access to benefits after a work-related injury. This lack of support can lead to significant financial hardship for injured workers.
Recent legislative changes
Massachusetts has made efforts to change gig worker classifications, particularly through initiatives such as those seen in the recent ballot proposals. These proposals aim to clarify whether gig workers should be classified as employees or independent contractors, using guidelines similar to the ABC test. While these efforts are intended to extend more employment benefits to gig workers, the legal landscape remains uncertain, and many companies continue to oppose changes. Some gig companies have introduced insurance options, but they often fall short of traditional workers’ compensation protections.
What gig workers should know
Gig workers need to understand their rights and any available coverage options. While most lack traditional workers’ compensation benefits, some companies offer limited forms of insurance. Gig workers should explore these options and consider personal insurance policies to stay protected.
The gig economy will continue to evolve, and so will the laws affecting it. Staying informed about legislative changes and exploring all available coverage options can help gig workers protect themselves and their livelihoods.
