Coronavirus could lead to gig economy reform in favour of workers

Uber and Lyft announced funds to compensate drivers who had been quarantined or diagnosed with the Covid-19 who were initially ineligible for benefits as independent contractors.

The crisis could lead to a reform of the gig economy in the US as drivers are pressed into not working but cannot afford to take time off even when they are sick.

The two weeks of compensation that are being offered by both companies represent a concession in the fight gig companies have spent years and millions of dollars waging on the status of drivers.

“Sick leave is something generally only provided to employees,” said Eve Wagner, a California-based employment attorney. “If you grant someone paid time off, that implies employee status.”

If companies are offering paid time off even as they argue that their workers are not full-time employees shows they can no longer ignore the importance of sick leave.

Veena Dubal, a labor law professor at the University of California-Hastings. said: “This is true all the time: it’s true when workers have the flu or the common cold, or when they are sick in any capacity, but it is being very well highlighted by fears around coronavirus,” she said.

Nonetheless, Kristen Anderson, founder and chief executive at Catch, said that gaining employee status also does not guarantee health care protections.

“Changing the tax classification of these employees does not necessarily translate to financial stability and wellbeing,” she said. “A lot of people when faced with the vague and ambiguous chance they might get sick versus the very real consequences of not being able to pay rent or health insurance premiums will choose to work.”