FTC Pursues Protection for Gig Workers Against ‘Unfair or Deceptive’ Algorithms

The Federal Trade Commission’s Protection of Gig Workers

The Federal Trade Commission (FTC) has made a significant effort to protect gig workers from exploitation through the adoption of a policy statement outlining its approach to addressing the challenges faced by these workers. The FTC is committed to intervening in cases involving misrepresentations regarding pay, costs, benefits, and work terms, as well as concerns related to “unfair or deceptive” algorithms, oppressive contracts, and anti-competitive practices such as wage fixing and monopolistic mergers.

Enforcement Regardless of Worker Classification

It is important to note that the FTC has emphasized that the classification of workers as contractors or employees will not impact enforcement actions. Companies will not be able to avoid consequences by categorizing workers as contractors, as violators may face fines, required practice changes, and potential collaboration with other government agencies like the Justice Department and National Labor Relations Board to address issues.

Challenges and Opportunities for Improvement

Despite the FTC’s efforts, challenges persist, including difficulties in proving abuse driven by algorithms and identifying non-contractual restraints that may limit workers’ freedom of movement. However, the FTC’s policy serves as a warning to gig companies engaging in practices that could harm workers, such as concealing operating costs, opposing unionization efforts, or colluding to suppress wages.

Broader Efforts to Support Gig Workers

The FTC’s initiatives are part of a larger movement to improve working conditions for gig workers. Congressional bipartisan measures have been introduced to provide portable benefits for gig workers, and the Labor Department has taken steps to revoke rules that hinder the protection of labor rights for these workers. States and cities have also taken legal action and implemented measures to enhance working conditions. The FTC’s policy serves as a nationwide safeguard against exploitation in the gig economy, complementing ongoing efforts to support and protect gig workers.