FTC Takes Purpose At Firms Deceiving and Exploiting Gig Staff

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Gig employees have been driving passengers round, searching for items and delivering dinners for years, typically placing their security in danger with out getting the advantages of full-time workers. Now, the Federal Commerce Fee has clarified its insurance policies for corporations within the so-called gig economic system that deceive and exploit their employees. 

“Defending these employees from unfair, misleading and anticompetitive practices is a precedence, and the Federal Commerce Fee will use its full authority to take action,” the FTC’s weblog publish stated about its clarified insurance policies for the gig economic system, which is anticipated to generate $455 billion in annual gross sales subsequent yr. 

The FTC explicitly outlined dangerous firm actions in its 17-page coverage assertion, like how restrictive and nonnegotiable contracts could hurt employees by stifling free speech or preserve them from in search of new work whereas employed, which might violate Part 5 of the FTC Act. The fee additionally put the gig business on discover that it’s going to examine any signal of backdoor agreements between corporations to repair wages or different types of anticompetitive motion. 

Firms using gig employees at an enormous scale like Uber and Lyft have proposed statewide initiatives to forestall their contract employees from turning into full workers with advantages, together with the 2020 Proposition 22 in California, which voters authorized. Regardless of a choose ruling the proposition unconstitutional, it stays in impact as appeals run their course.

Uber and Lyft did not instantly reply to a request for remark.

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