Take a Hike? Not This Time. CARES Act Offers Unemployment Help for Gig Workers

61C63C40-A3B8-41A8-A458-1545EB3168E8While coyotes invade San Francisco and wild boars torment Barcelona, things are a bit quieter here in Cleveland.

Last weekend, I took a few hours off from the nonstop advising on all things COVID-19 and went on a hike with my family at Cuyahoga Valley National Park, about half an hour from my house.

But then it was back to work, and back to keeping up on all the latest COVID-related legal developments, and there are a lot. One item of note for independent contractors and gig workers is the new CARES Act, passed earlier this week.

While unemployment insurance coverage traditionally has not been available for independent contractors, the CARES Act makes it possible for self-employed contractors to obtain coverage.

Hopefully this is a small first step toward allowing independent contractors to obtain more benefits without converting them to employees. The binary system we have — either you’re an employee or an independent contractor — generally means all or nothing. That’s why so many state legislators are trying to convert contractors to employees — so these workers can receive benefits and other protections that the law provides to employees but not to contractors.

There’s a better way, such as the path forward proposed by five gig economy companies in California, with a measure that hopefully will appear on the November 2020 ballot.  (You can read more here.)  We need a middle ground that allows self-employed contractors to remain contractors, while allowing them to obtain some of the benefits that employees receive.

The trail I went on last weekend was a loop. It ended right back where it started. Hopefully the CARES Act is a small step in a new direction, and we can move away from the binary legal choice we’ve been stuck with for decades.

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© 2020 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

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