Employment policies that allow employers to exploit rules and regulations around contingent work have created major issues for workers. Here are five tactics that corporations could use to exploit workers, tactics that contingent workforce managers need to avoid and replace with proper approaches:
- Inappropriate Pay for Work Performed
While the Fair Labor Standards Act of 1938 established the 40-hour workweek and that workers must be paid time and a half four hours work beyond 40 hours, there was no imposed limit on the number of overtime hours.
- Wage Theft
A study of three cities found that, in one year, $3 billion in wages were stolen from low wage workers by employers by not paying for overtime, working them off the clock, or not paying minimum wage. Researchers estimate that $50 billion is stolen from the country’s low wage workforce every year.
- Forced Arbitration
Under this contract provision, workers waive their rights to sue or participate in a class action lawsuit against their employer. Disputes have to be resolved by a private arbitrator instead of a judge and jury in a court of law – and the outcome is private.
As of 2019, forced arbitration affected 60 million workers and overwhelmingly favors the employer.
- Unpredictable Scheduling
More than 40% of surveyed younger hourly wage retail workers report that they received their schedules with one week or less notice. This creates an enormous burden on vital activities such as childcare and having a second job, and causes high levels of stress.
- Misclassifying full-time employees as independent contractors
Those classified as an independent contractor are not entitled to valuable benefits such as minimum wage unemployment insurance, sick leave, or the right to bargain for better working conditions. For example, two major vehicle-for-hire companies saved at least $413 million from 2014-2020 by not paying into unemployment.
Workers Deserve Better
Those who manage a workforce, including contingent and gig workers, need to stay on top of trends – both fair and unfair – to provide the right foundation not only to prevent worker abuse, but to provide fair, reliable, and beneficial work.
Contact C.Solutions for help in providing the right approach to managing your contingent workforce.
