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Employment Discrimination in the Gig Economy

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Posted: 11th November 2024 by
Lawyer Monthly
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One of the latest features of modern businesses is the gig economy, where flexible, short-term arrangements of work are offered, most often through online platforms. In Los Angeles, you see a diverse workforce, where rideshare operations and freelance professionals are classified primarily as independent contractors and not as employees. That classification has a wide range of legal implications as the independent contractor lacks the status of a regular employee. Hence, they usually do not enjoy all the benefits and protections provided for regular employees. 

Los Angeles, a vibrant metropolis with a diverse workforce, also has many employment discrimination cases. If you or someone you know has experienced workplace discrimination based on race, gender, age, religion, disability, or other protected characteristics, seeking guidance is essential. In order to avail yourself of the benefits and deal with the implications associated with the gig economy, it’s recommended that you seek help from reputed employment discrimination attorneys in Los Angeles. They are well-versed in the legal provisions surrounding minimum wage, overtime compensation, and health care benefits, among others. Let us understand more about the challenges and ways to address those challenges.

Challenges of Discrimination in the Gig Economy

Lack of Clear Employer

The relationship between the worker and the platform in the gig economy is often ambiguous, making it difficult to identify a clear employer in discrimination claims. Thus, gig workers will face difficulties in filing discrimination complaints or seeking legal redress since there might not be a clear entity to blame.

Limited Protections for Independent Contractors

Gig workers do not receive the same protection as traditional employees. This may expose them to situations where they face discrimination and exploitation. These contractual workers are at greater risk as they may not be entitled to the minimum wage, overtime, and healthcare benefits in the workplace by anti-discrimination laws and workers' compensation.

Subjective Ratings and Algorithms

Thanks to the subjective nature of ratings and reliance on algorithms, gig platforms usually rely on just the assessment of the worker's performance without considering other factors that may play a role, too. It, therefore, offers opportunities to discriminate on the basis of race, gender, or even age.

Power Imbalance Between Workers and Platforms

The dynamics of power are not balanced since the majority of gig workers have little bargaining power and would not want to report any employment discrimination while employed because they either fear losing work or getting retaliated against.

Addressing Discrimination in the Gig Economy

Redefine Employment Relationship

There is now an emerging campaign to reclassify gig workers as employees rather than independent contractors. Reclassifying would mean giving gig workers greater legal protection, including minimum wage, overtime pay, and anti-discrimination protections under the labour laws. Policymakers and courts are working to empower gig workers by recognizing them as employees, thus levelling the playing field so that their rights and protections can be the same as those of traditional employees.

Strengthening Anti-Discrimination Laws

The anti-discrimination laws that presently exist would have to be amended in order to adequately address the unique challenges faced by gig workers. In this regard, the existing laws could explicitly state that discrimination based on platform ratings and algorithmic decisions is not allowed. The mechanisms of enforcement may also have to be strengthened, meaning the gig platforms will have their discriminatory practices called to account. By scaling up and strengthening the anti-discrimination legal apparatus, it is possible to allow policymakers to offer a more robust legal framework that ensures that gig workers enjoy protection from discriminatory actions.

Enhancing Transparency in Platforms

Gig platforms should be made transparent about rating algorithms and metrics concerning performance for the sake of fairness and equity. It can help identify potential biases or different kinds of discriminatory practices that may be hidden in these systems. Greater transparency can empower workers with a more acute sense of how their performance ratings are done and encourage them to contest any unfair or discriminatory treatment.

Encouraging Unionizing

Gig workers can reclaim their rights and capacities to collectively bargain for better working conditions and protections through unions and worker cooperatives. Organizing will give gig workers a stronger voice and power to negotiate to make the working conditions better, improve wages and benefits, and reduce work insecurity. Furthermore, unions can access more experienced legal counsel and comprehensive support in bringing legal action related to all forms of discrimination and other workplace issues.

Promoting Diversity and Inclusion Initiatives

Gig platform development should focus on policies and practices that encourage workforce diversity and inclusion. Integrating workforce diversity in recruiting and retention practices helps eliminate discrimination and harassment at workplaces. By embracing inclusiveness in all aspects of their operations, companies that are a part of the gig economy can become more equitable and just.

Conclusion

Employment discrimination in the gig economy presents complex issues and has extreme implications for the rights of a worker and their economic security. Legislative reform and policy change, as well as collective action to change these challenges, can help ensure that the gig economy better serves all workers, irrespective of any differences in background, including race, gender, and the like.

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