App-based workers need real rights, not ‘portable benefits’ gimmicks
Last week, Wisconsin Gov. Tony Evers (D) vetoed a dangerous bill. Disguised as a way to provide so-called “portable benefits” to app-based workers, the bill was a corporate gimmick designed to exclude app-based ride-hailing and delivery workers from state employment rights such as minimum wage, workers' compensation and unemployment insurance.
Backed by major companies like Uber, Lyft and DoorDash, these portable benefits bills are popping up around the country as part of a larger effort to legitimize business models based on misclassifying employees as independent contractors and avoiding accountability to their workers and the public.
Whereas workers would gain little, corporations stand to gain a lot. By classifying their workers as independent contractors, these corporations can skip out on complying with minimum wage and overtime protections.
They can also avoid providing employment-based benefits such as paid leave, health insurance, workers' compensation and unemployment insurance — benefits that are standard for their corporate employees.
Now, in exchange for excluding workers from employment rights and benefits, the companies could, but would not be required to, offer these workers portable benefits — glorified savings accounts with minimal company contributions.........
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