Bill would require gig economy employers to provide benefits for workers
The bill, which advanced in a 3-1 vote, comes amid a broader discussion of how to treat gig workers in an ever-changing economy.
The Senate Labor Committee on Thursday advanced a bill that would require gig economy companies like Uber and Postmates to provide benefits for their New Jersey-based workers.
The bill would require companies to create a so-called portable benefits structure, meaning workers would be able to carry their benefits with them when they get a new job. If a worker is employed by multiple app-based companies at the same time, each company would be required to contribute to that worker’s benefits.
Sen. Troy Singleton, the bill’s sponsor, wrote in an op-ed for the Star-Ledger that even though the nature of work is changing, workers still want benefits such as health insurance, a retirement savings plan and access to workers compensation.
“This idea isn’t about trying to make new employees fit into an old world classification structure,” Singleton (D-Burlington) wrote. “It is purposely designed to recognize that work relationships in the 21st century are vastly different than they once were.”
More than one third of the nation’s workforce is employed in some form of gig work, Singleton wrote, and baby boomers have held an average of 12 jobs throughout their lifetime. That number is expected to increase among millennials, he said.
The bill, which advanced in a 3-1 vote, comes amid a broader discussion of how to treat gig workers in an ever-changing economy. After a drawn-out debate in California, New Jersey and New York are considering legislation that has the potential to redefine whether gig workers for companies like Uber and DoorDash should be treated as company employees, not independent contractors.
Under the bill the Senate committee advanced on Thursday, “contracting agents” like Uber that have more than 50 workers in the state would be required to help pay into a worker’s benefits package. The companies would be required to pay benefits for each worker, based on the number of hours worked or a percentage of money that was made.
Denzel Singletary, a senior government relations professional for Postmates, a delivery service, said these benefits should be “truly portable” and “have an appropriate contribution rate.”
“It is incumbent on the tech industry, organized labor and legislators to forge a new social compact, that provides flexible app workers appropriate benefits, injury and civil rights projections,” he said. “I applaud Senator Singleton’s legislation for being an important springboard for multi-stakeholder conversation.”
Few company representatives spoke during the committee meeting, but several indicated they opposed the bill, including the New Jersey Food Council, New Jersey Business and Industry Association, New Jersey Chamber of Commerce and the National Federation of Independent Business.
Sen. Fred Madden (D-Gloucester), who chairs the Labor Committee, told opponents that he’s spoken to Singleton and he is willing to work to make changes.
“As [Singleton] moves forward, he has assured me that he is going to be open to discussions and tweaking, to make it the best product it can be,” Madden said.