NLRB decision makes it easier for gig workers to unionize

The National Labor Relations Board has thrown out a Trump-era policy that had made it harder to categorize workers as legal “employees,” paving the way for unions made up of independent contractors.

The agency ruled Tuesday that it would revert to an Obama-era policy that broadens the factors taken into consideration when classifying a worker as an independent contractor or an official employee.

The new policy generally makes it much harder for workers to be classified as independent contractors. Labor law only allows workers with “employee” status to join labor unions.

The ruling comes as part of a case involving makeup artists at the Atlanta Opera, which claimed that the workers were not employees and thus could not form a union.

The NLRB disagreed and said the workers could hold union elections.

While labor leaders applauded the ruling, others say the decision will undermine worker independence.

“This decision will only generate greater confusion and uncertainty, while undermining the independent work that millions of Americans have chosen, in lieu of traditional employment,” Kristin Sharp, CEO of gig economy firm Flex, told Reuters news agency.
While many Americans still opt for traditional 9-5 jobs, a growing number of workers are classified as independent contractors.

While those workers are technically categorized as “self-employed,” they often work for other companies delivering goods and services. Drivers for ride-sharing apps like Uber or Lyft are categorized as independent contractors and the same goes for those who deliver food on Grubhub or Doordash.

The gig economy has only grown since the COVID pandemic drastically changed the job market.

According to the Bureau of Labor Statistics, around 36% of U.S. workers are independent contractors. Some estimates say that nearly half of the U.S. workforce will be gig workers by 2027.