Today’s workplace is vastly different from a generation ago. Workers now have an array of arrangements that allow them to maximize flexibility. This is a priority for many individuals who want to balance employment with other personal and professional priorities. For example, working parents, in general, prefer flexible working conditions to a higher salary. In surveys, Millennial workers also say they are willing to or have left a job that does not offer flexibility.
Unlike traditional employees, independent contractors (including freelancers, gig workers, and consultants) control when, where, and how they work. This flexibility is one reason that contracting jobs are increasing in popularity. Technology has expanded independent contracting opportunities as digital platforms match workers to businesses looking to hire them for tasks and projects such as ridesharing, secretarial work, or delivery services, in what is known as the gig economy. In 2019, an estimated 57 million Americans freelanced and over half of them say no amount of money would persuade them to take a traditional job.
So why, then, are policymakers seeking to limit opportunities for independent contracting? They claim that, by implementing policies that make it more difficult to be classified as independent contractors, they are protecting workers from exploitation and ensuring that public coffers are not deprived of tax revenue. California’s Assembly Bill 5 is the latest law to inflict wide-ranging harm on freelance workers across the state. If other states or Congress adopts AB5’s standards, this will destroy desired flexible working opportunities for millions of workers nationwide.