Dear MEL Topic Readers,
California passes landmark gig economy rights
bill
“Gig” typically means a job for a specified period
of time or by the project. In the gig economy, independent workers take temporary
positions or job opportunities that are offered by organizations or customers.
Typical examples of such workers are freelancers like web designers, independent
contractors like baby/pet sitters and ride-hailing drivers, and project-based
workers like engineers and technicians.
As the workforce becomes more mobile and ubiquitous,
work can be done anywhere and whenever needed. Also, digitization and
smartphones have made matching easier between those who need the workforce and those
who want to offer their time.
A typical business model is ride-hailing
services. A mobility service provider matches riders with drivers via mobile
apps or websites, such as Uber in the US and DiDi in China. Since these gig
workers are paid only by their time or services, they don’t have any other
benefits that ordinary employees enjoy, such as paid absence, sick pay or health
care.
Now, lawmakers of California, the home to
many such gig economy giants like Uber and Lyft, have passed a landmark bill to
mandate companies to offer such benefits to gig workers. Though how the law is
enforced is yet to be seen, this could increase the labor costs to the gig economy
companies significantly, and could even affect their business model.
Enjoy reading the article about the law that
could shake the rising gig economy.
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