The “gig economy” is where more and more people are finding work. This allows for greater flexibility for workers who do not want to be tied to one job or who have to balance earning a living with family obligations. However, this allows employers to avoid providing benefits such as health insurance and allows companies to deny that they are even an employer.
This has serious consequences when people get hurt. If you drive your own vehicle to deliver packages for Amazon Flex or to carry passengers for Uber or Lyft, they will deny that you are an employee when you get injured. They will refuse to pay the benefits to which you are entitled under the Workers’ Compensation Act. Benefits are paid to employees but not independent contractors. Companies will claim that gig workers are not employees but are independent contractors.
The Courts have found drivers for a pizzeria and for licensed taxi companies are employees. There are no decisions regarding drivers for gig economy companies such as Amazon, Uber or Lyft yet. Gig economy companies say that all workers are paid by 1099. This is only one factor in determining whether somebody is an employee.