Today, more organizations and independent workers are engaged in short-term, transient work. The gig economy has become a trillion-dollar industry with millions of participants. Some of your workers’ compensation claimants may be working part-time and being paid per job or by project. Work and income earned in the gig economy may impact their benefits.
The gig economy includes more than Uber, Lyft, and Door Dash. It includes freelancing, consulting, independent contractors, temporary contract workers, online marketplace sellers, and artists selling their work on Etsy. These arrangements can provide primary or secondary income. They make it possible for people to frequently change employers, or to work for several different businesses at the same time.
These four statistics show the size of the challenge:
- According to Upwork, 57 million people freelance in the U.S. They estimate 86 million freelancers by 2027.
- Some 20 to 30 percent of the working-age population in the U.S. is engaged in some form of independent earning, according to McKinsey.
- Work in the gig economy is the primary source of income for 44% of gig workers, says Edison Research.
- 55% of gig workers also maintain full-time or regular jobs, according to PYMNTS, experts in the connected economy.
What this means for you
It is essential to determine employment status and income earned for any claimant receiving disability payments. Follow these best practices:
- Ask questions during recorded statements or depositions
- Probe for all types of employment activities and income
- Employment, self-employment, contract, or subcontract work
- Side work, part-time employment, volunteer work
- Work for cash, barter, or trade.
- Get statements from co-workers, supervisors, and others
- Search social media
You are responsible to pay only legitimate claims. Be proactive: leverage investigations to get the facts about a claimant’s employment status.
Uncover the Facts. Put VRC Investigative Experts to Work for You Today.
We welcome any questions regarding investigations or our fraud abatement partnerships at experts@vrcinvestigations.com or daleneb@vrcinvestigations.com
