The gig economy presents complex employment issues that are resulting in inconsistent legal rulings on the independent contractor or employee status of gigging workers. This has left companies uncertain about how to run their businesses and classify their workforces.
In the gig economy, providers are technology companies with software platforms for users to connect with service providers. The technology company provides leads and payment processing services to the service provider, who is able to use multiple apps and accept or decline leads provided by the company. Service providers typically use their own equipment, such as tools or vehicles, to perform the services. Currently 20 percent to 30 percent of the workforce in the United States engages in some “gigging” work. See “Independent Work: Choice, Necessity, and the Gig Economy,” McKinsey Global Institute, October 2016.
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