'Gig Economy' Workers Push For Employee-Style Benefits : Shots - Health News The vast majority of the estimated 54 million to 68 million contingent or independent workers in the U.S. don't receive employee benefits, though some firms and lawmakers are trying to change that.
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Efforts Increase To Bring Health And Other Benefits To Independent Workers

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Efforts Increase To Bring Health And Other Benefits To Independent Workers

Efforts Increase To Bring Health And Other Benefits To Independent Workers

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KELLY MCEVERS, HOST:

The number of Americans working in the gig economy is in the tens of millions and growing fast. They're driving cars, writing bits of code or doing tasks for hire on a project-by-project basis. The vast majority of those making a living this way do not receive employee benefits like health care or sick days. NPR's Yuki Noguchi reports that some employers and lawmakers are trying to change that.

YUKI NOGUCHI, BYLINE: The list of perks Dan Teran's company offers sounds pretty dreamy.

DAN TERAN: Anyone who works 120 hours a month is eligible for medical, dental and vision insurance. We also offer a 401k with a match, paid time off. And we have a stock option program for all of our employees.

NOGUCHI: Plus 12 weeks of paid parental leave. Those are highly unusual perks considering most are part-time workers who work only when they're available. Also, Teran's company does janitorial, building maintenance and temporary secretarial work where such benefits are almost unheard of. Teran says he didn't want to run a business with high client and employee turnover.

TERAN: In order to deliver the best service, we need the best people. And to attract and retain the best people, we need to be the best employer.

NOGUCHI: Teran's company, Managed by Q, is an exception. Workers in the gig economy typically do not receive benefits, though some hope that will change. Lawmakers in Congress and at least four states are considering proposals aimed at funding and creating new systems to deliver benefits to these workers. Temporary work is nothing new. What is is the explosion of services like Uber, TaskRabbit and many others that are spreading gig work to various industries. Ravin Jesuthasan is managing director and talent expert at Willis Towers Watson. He says as contract work goes mainstream, companies are looking to perks to get better work out of their contract workers.

RAVIN JESUTHASAN: It's very difficult to motivate that person to go kind of above and beyond and to feel committed to your mission and cause. So that's a key part of it - is, you know, how do we ensure we're attracting the very best, we're engaging them and we're equipping them to represent the best of who we are?

NOGUCHI: But there's a big reason most companies do not offer their gig workers benefits. Rich Meneghello is a Portland, Ore., lawyer who represents employers.

RICH MENEGHELLO: There's a real solid concern that if they offer benefits packages towards their workers, that these workers would then be classified as employees.

NOGUCHI: That's a problem for employers because under the law, employees have more rights than independent contractors for benefits, to unionize and other worker protections. As contingent work grows and morphs, courts and regulators are now wrestling with questions of classification and worker rights.

Sara Horowitz is executive director of the Freelancers Union, representing 360,000 members. She says as gig work grows, this debate will intensify, and the question of benefits for these workers will take on more importance.

SARA HOROWITZ: I think we also want to start imagining the next era of a safety net where people can do the work they enjoy and need to do and can get the benefits that they need.

NOGUCHI: Virginia Democratic Senator Mark Warner last month proposed a bill to fund experimentation with portable benefits programs, ones that travel with the individual regardless of where they work.

MARK WARNER: We need to rethink the social contract for the 21st century. That social contract has to be updated to a much more portable form.

NOGUCHI: Stride Health, a San Francisco firm, has built software that allows independent workers who can afford it to buy health care and financial benefits on their own. Noah Lang is Stride's CEO.

NOAH LANG: Where we're driving change is going ahead and building up the systems to allow independent workers to get on equal footing.

NOGUCHI: He says he hopes as policies change, Stride can offer a model for how companies can contribute to benefits for their contingent workers. Yuki Noguchi, NPR News, Washington.

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