Breakingviews - Gig work value is too great to rush a US overhaul

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Breakingviews - Gig work value is too great to rush a US overhaul
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The Department of Labor under President Joe Biden has pitched a rule that would classify gig workers as traditional employees. The proposal could secure benefits for freelancers, yet perks come at a price to them and the economy in general. BenWinck

And while health insurance and retirement savings are valuable perks, gig workers view flexibility in the same way. Nearly two-thirds of app-based freelancers spend less than 15 hours per week doing gig work, according to a Morning Consultpublished last month. Half of surveyed gig workers, meanwhile, make less than a quarter of their income from freelancing.

The Labor Department can address some disparities by testing portable benefits, which allow freelancers to pay into certain perks across employers. Yet three-quarters of app-based freelancers prefer keeping their independence, Morning Consult found. With most gig workers happy as they are, a one-size-fits-all rethink threatens pointless harm to a growing corner of the economy.U.S. President Joe Biden picked then-Deputy Labor Secretary Julie Su to head the Labor Department on February 28.

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