FTC WARNING TO GIG COMPANIES
October 26, 2022 - Douglas Myser
FTC warning to Gig Companies. When the Biden campaign started, one of the promises it made, was to protect the rights of workers and help unions regain lost ground to increase the wages of Americans. On that same front, the FTC, under direction from the Biden Administration, is planning on cracking down on what it views as the exploitation of Gig workers, from companies like Uber, Lyft, and Door Dash, that are not really even paying a minimum wage to most workers. These workers are entitled to protection under labor laws irregardless of the claims being made that it is a classification issue. These companies have stated that allowing these workers to be independent contractors is what attracts them to this type of work. In reality, it makes no difference what the classification is, they are still entitled to protection form unfair labor practices, and the status of them as a worker does not impact those laws. FTC warning to Gig Companies.
The FTC stated that these companies are being deceptive in hiring practices, by making false claims about how much workers can earn, about the conditions they will work in, using unfair contract terms, in short not telling the truth to these workers about the work they will do. The FTC is going after the biggest of these companies, which are Uber, Lyft, Door Dash, and Instacart. It is the FTC's Bureau of Consumer Protection that provides for the safety and protection of American workers in the workplace. These companies have been abusing these laws for years under Republican leadership, and the abuse of these workers is rampant.
The idea that it is a status issue is false, as irregardless of status, whether you are a 1099 independent contractor, 1040 employee, or other, you are still entitled to the protection of worker laws in the United States. These arguments have actually been made by several Republican Congress people who have large stock positions in these companies, and should recuse themselves from these conversations altogether. But we know how Congress works, and the more money is involved, the greasier the playing field gets.