Monthly Archives: November 2016

The Trump Administration and the Gig Economy

The co-founder of WorkMarket, https://www.workmarket.com/about#jeff-wald Jeff Wald, hosted a webinar today on what the new Trump administration will mean for the on-demand economy.  Since I differentiate the Gig Economy from  the On-Demand one in my new book, Thriving in the Gig Economy, which will be coming out next spring, I listened more for the implications for the career gig workers, experts who have chosen to create a careers as  independent workers.

With the disclaimer that no one REALLY knows what may happen, Wald's prediction was two fold - what is likely to happen in 2017 and what may happen in 2018.  Immediately after the inauguration, regulations , especially those resulting from the 2010 Obama task force meant to tackle worker misclassification would be discontinued or not enforced.  The misclassification, of course, refers to the independent contractor vs. employee issue, which I have probably blogged too much about.  ( See my post I am Uber the Uber Lawsuit ) Moreover, he thought the task force would be disbanded immediately. This could bode well for many senior consultants who would like to work independently as an independent contractor but have clients who are wary of the misclassification risk.

Wald did not think the Affordable Care Act (ACA), commonly referred to as ObamaCare would be repealed, rather he thought it would be revised into "DonaldCare", where certain elements would be maintained, like the coverage of children up to 26 on their parents' plans. The ACA has been a key enabler in the gig economy, since the ability to secure health insurance make the decision to go solo a more viable one.  Although I hope Wald is correct on this prognostication, I am withholding judgement until the Labor Secretary is named.

Perhaps the most important action, and the one which will have the least attention, is the appointment of a new Commissioner for the National Labor Relations Board. (NLRB) One of two recent NLRB decisions adversely impacted the staffing industry, by  increasing the risk of co-employment when using temporary staffing/gig workers.  A new NLRB appointee could reverse that decision, which would be a boon for temporary and specialty staffing firms.

And finally, the Supreme Court  appointment could have a major impact on the workplace. Frederick vs. the California Teachers' Association was denied a hearing in a 4 to 4 decision in June. The case involved mandatory union fees.  The tea leaves Wald reads suggests that a rehearing with a new more conservative court would strike down the mandatory fees, which would be a major blow to organized labor. Since many are suggesting the gig economy should become unionized, much like Hollywood back in the day, such an action may alter that thinking.

Looking into his crystal ball for 2018, Wald thought there could be some movement in the chronic problem of worker classification.  Trump likes to simplify complexity, and the rules governing independent contractor compliance are nothing if not complex.  Wald thought there is a chance that certain benefits, like retirement, may be unbundled from employment.  (Again something I just blogged about as well - Work, Jobs and the Gig Economy ).  Finally, tax reform will likely take until 2018, since it is a complex problem.  Again, in the interest of simplification, the new tax regulations could eliminate many of the business deduction provisions that have been a mainstay of the self-employed career consultants. That said, a lot will happen between now and then.  Time to strap on for the ride.

What is gig economy? - Definition from WhatIs.com

A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.
What is gig economy? - Definition from WhatIs.com

A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.

ReSurge – Transforming lives through Reconstructive Surgery and Training

 

resurgeHere s a great video of our ReSurge Gala last month.  It was a tremendous success and honor to be in a room filled with so many people passionate about our mission to transform the lives of the poor around the world by not just providing reconstructive surgical care, but more importantly, training the next generation of plastic surgeons in the developing world. It is our Global Training Program that makes us unique.  It is our commitment to advocating the need for Global Surgery, a need that the WHO and the Lancet Commission is now recognizing. Our partners, plastic surgeons, anesthesiologists, pediatricians, nurses, translators and donors, share the satisfaction of knowing we are not just helping people now, but we are building a solution for the future.  Please enjoy this wonderful opportunity for us to celebrate our work.

https://youtu.be/eH1HBHevLF0

Work, Jobs and the Gig Economy

As I work on my book, Thriving in the Gig Economy , I have had the opportunity to talk to many experts, from CEOs to futurists about the future of work.  I was thrilled last week when one of them shared my pet peeve, one that is all the more acute in an election year --  the fact that so many Americans equate work and jobs.  Work is so much more than a job, or more precisely a "regular full-time job".  work encompasses all sorts of pursuits, from part-time work, to self-employment to gigs to volunteering.

If you look at the definition, http://www.merriam-webster.com/dictionary/work, it is "an activity in which one exerts strength or faculties to do or perform something:"  In fact in all 11 definitions cited, the word "employment" never appears.

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None the less, we constantly hear our politicians talking about how important it is to create jobs.Yes that is important, but as the world is changing with technology and new work models.  What is unfortunate about this focus on jobs and not work is the attachment of social infrastructure to employment. Employer provided  health and retirement benefits are great for current employees, but leave all of the other workers, from part-timers to gig workers potentially at a disadvantage.  Moreover, the employment oriented fringes may constrain an individual's entrepreneurial path; it will be tougher to become an independent consultant if the Affordable Care Act is repealed.

That said, the government has a vested interest in bolstering traditional  employment structures, and that interest is not in benefits but in taxes.  It is a lot easier to collect employment taxes from companies than from a myriad of individuals. As such, the argument that we need to revise our vision of employment, can fall on deaf ears.

Charles Handy, an Irish economist and expert in the world of work, said in his new book, The Second Curve, writes, “The strange truth is, if you have a so-called proper full-time job today, you are in the minority.  The world has changed and few have noticed.”  We need to take notice and enable opportunity accordingly.

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