How Does Compensation Work for Gig Workers Injured on the Job?

With more and more organizations coming up in the US market, there has been a marked proliferation of gig-based work in recent years. The gig economy has risen to unprecedented levels recently, with the number of gig workers continuously growing with each passing year. However, what happens when these workers are injured on the job, and who is responsible for their compensation of property and bodily damages sustained on the job?

Gig Workers at Risk

Statistics have proven that more than 36 percent of workers in the United States are now practicing side hustles to supplement their main source of income. These types of jobs include delivery workers and taxi drivers, among others. While their jobs are important, they risk not receiving compensation for their injuries or property damages. Newsrooms have revealed that gig workers are at a high risk of getting physically assaulted or killed while working due to the nature of their jobs. With the number of gig workers increasing yearly, support for these groups must be enhanced. However, the nature of the gig economy and the lack of adequate legal systems have made it difficult.

Why Compensation for Gig Workers Is Complicated

Normally, when employees are injured in the workplace, the workers’ compensation union steps in to cover any medical expenses incurred and compensate workers for any physical and emotional pain. Unfortunately, this is not the case for gig workers, as they cannot access these services, even with the help of a workers’ compensation lawyer. In addition, most gig workers lack proper health insurance coverage, which traditional workplace employers naturally provide. Their jobs are also risky as they do not guarantee future employment. The lack of definite guidelines surrounding these jobs makes it difficult for these workers to be insured.

Gig workers are also often self-employed and lack a union offering them benefits such as a pension, life insurance, or disability insurance. Therefore, they face more significant challenges when they incur injuries. Gig workers often find themselves at a loss as most companies they work for exempt themselves from being liable for any injuries sustained while working. Therefore, most workers and their families pay out of pocket for damages if they are injured. 

This was the case of Bella Lewis, a Lyft driver who was killed by a passenger she was transporting. Lyft’s insurance company did not offer any compensation to the family, and they had to cover all expenses themselves. This places an immense amount of financial burden on gig workers, not to mention the devastating emotional turmoil and the wide range of non-economic losses.

However, all hope is not lost, as the United States government has plans underway to ensure that gig workers also have employment benefits. These plans include providing unemployment benefits since many of them had difficulty coping after losing their jobs during the pandemic.

Future Hope

The lack of robust systems in place and the fledgling nature of the gig economy currently pose a number of challenges for gig workers in the country. However, the United States labor secretary has explained how the government is working to ensure that employers treat gig workers with the utmost respect. The statement received positive reinforcement from companies such as Uber, which are now creating safe environments for workers without interfering with their working environment. 

Conclusion

Gig workers also play a role in building the United States economy. Freelancing websites such as Upwork have discovered that freelancers generate close to $1.2 trillion, with most working more than 40 hours a week. Gig workers are not any different from other workers as their jobs have strict working hours and provide salaries. The gig community is dominated by individuals over 55 and under 40 years of age. With this community continuously growing each year, the government and companies with gig workers need to acknowledge the dangers and safety of these employees and offer them protection and benefits.