August 18, 2017

Workers’ Comp for Your Uber Driver?

Claims Management
, Cost Containment
, Legislation

A new Senate bill has been introduced to provide “gig” companies – like Uber, Postmates, and TaskRabbit – with a $20 million grant fund to provide benefits for employees.

We are all familiar with Uber, but there are many on-demand services all with employees that are part of the "gig economy." For example, Postmates delivers food and goods and TaskRabbit provides a marketplace of freelance labor including immediate help with everyday tasks like cleaning, moving and home improvement.

While the growth of the gig economy continues to rise substantially, so do the issues regarding lack of health insurance and other benefits for these workers.

In addition to the grant fund, the bill is an incentive for states, local governments, and nonprofits to adopt new “portable benefit models” that would provide benefits to the independent workforce.

Senator Mark Warner recognizes the evolution of jobs away from what has been considered traditional full-time employment.

“As more and more Americans engage in part-time, contract or other alternative work arrangements, it’s increasingly important that we provide them with an ability to access more flexible, portable benefits that they can carry with them to multiple jobs across a day, a year, and even a career,” he said.

The bill has just recently been introduced in the Senate and is awaiting approval, although it may take more for it to become a law.

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