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How the Gig Economy Affects Workers’ Comp

How the Gig Economy Affects Workers’ Comp

In most cases, employees are covered by workers’ comp which their employers pay for. However, Bloom Law Office has seen the gig economy incurring a spike in freelancers, contractors, and sole proprietors. These types of workers are not employees, and as such do not have workers’ comp coverage because they don’t have an employer.

The National Council on Compensation Insurance released a report in July 2019 showing that the gig economy will only grow the number of people not covered by workers’ comp in the future, too.

No Workers Comp For Side Hustles

According to the quarterly briefing, more and more people are depending on “non-traditional work” not just as a second source of income but as their only source of income. However, even if you have a side gig as a second source of income, it’s important to remember that if you’re hurt on that job, you don’t have workers’ comp coverage.

Today, 30 percent of American adults engage in some type of secondary gig or non-traditional work. As such, lawmakers are trying to figure out ways to regulate workers in these sectors.

Big Boom In Electronically Mediated Work

The biggest boom in the gig economy is in “electronically mediated work,” which includes workers who use apps like Amazon or Uber to make money. Since 2014, Americans engaged in electronically mediated work has tripled.

Surprisingly this type of work still makes up less than one percent of reported income. Of course, the gig economy has plenty of room to allow for unreported income. It’s reported that while the gig economy seems to be booming, it hasn’t had any impact on how many people are still engaged with more traditional work. This suggests that people are using the gig economy mostly as a secondary source of income, or are increasingly not reporting their earnings.

Side Gig Economy Can Put Workers At Higher Injury Risk

The gig economy can be a great way to make ends meet or simply increase a person’s earnings. However, there are also risks. Lack of workers’ comp insurance is a big one, especially since the gig economy can put workers at higher injury risk.

If you’re driving for the gig economy, undertaking hard labor, or dancing (as dancers are considered contractors), those are potentially riskier than working in an office. For those who have been hurt on the job and may qualify for workers’ comp, the best way to ensure a fast and fair payment is by connecting with a workers’ comp attorney.

Get The Right Legal Coverage When It Matters Most

Contact Bloom Law Office today at 855-208-3650, and remember that we don’t get paid until you do.

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