Confronting the Contingent and Underground Economy

Changes in the nature of work are eroding the traditional employment relationship and replacing it with temporary, contracted-out jobs with no security. Contingent work arrangements make it even harder for workers to organize as employers abdicate all responsibility for their workforce. The rapid growth of the on-demand, app-based economy only accelerates the race to the bottom in job quality and means thatCalifornia’s workers are less secure than ever.

We need to crack down on employers that willfully misclassify their workers as independent contractors whether dispatched through an internet-based app or through more traditional methods.  We must hold employers who use labor contractors accountable for wage theft and unsafe working conditions for temporary and contracted workers. Violating labor law should not be part of the cost of doing business and we need increased penalties to create real deterrents. We need better enforcement of state and federal labor laws to stop the growing underground economy and to create a level playing field for companies that play by the rules.

Back to California Labor’s Policy Positions