02/09/2017
Excerpt from "Risky Business: What happens when gig workers get injured on the job" by Karen Foskay
Independent contract work comes in many forms. Manny Vasquez, 26, was working as a bike messenger when he ended up on the hood of a car after being hit at a Long Beach intersection. The crash caused a torn ligament in his knee and required surgery. Vasquez didn’t have health insurance.
When it came time to pay for the medical treatment, he applied for workers’ compensation only to find out he didn’t qualify because he was an independent contractor. It was a shock. Other than paying more in taxes, Vasquez had no idea what the difference was between an employee and an independent contractor.
“It’s underhanded because it’s not highlighted when you take the job. Nobody mentions these things,” said Vasquez, who spent six months staying with family and friends while recovering from his injuries.
“The problem is people taking these gig jobs are not fully informed on what coverage they have or in these cases, what coverage they don’t have,” notes Paul Leigh, a health economist at UC Davis.
The gig economy is growing, and is predicted to employ as much as 50 percent of all workers by 2030. However, the impacts of independent contractors on the workers’ compensation system are not fully known.
“This is an important area for academic research and we haven’t done the work we should have on independent contract work and workers’ compensation claims and how these influence overall workers’ compensation in the past 15 years,” said Leigh.
Leigh is concerned employers are increasingly avoiding financial responsibilities by labeling workers as independent contractors and forcing them to incur all of the risks with no safety nets. When contract workers get injured and can’t cover the costs, it can be the taxpayers – not the employers – who are stuck with the bills, said Leigh.
Hospitals recoup the expenses by raising the premiums on those who are insured. Taxpayer funded programs like Medicaid become the substitute for unemployment insurance when independent contractors are too injured to work.
Leigh questions why this shifting of the financial burden isn’t seen as a fraudulent maneuver on behalf of insurers and employers.
“It can be the case that the employer may not classify the worker properly or may not record the injury properly. So I think the word fraud applies to employers and insurance companies equally as much as it applies to injured workers.”
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