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America must lead on the gig economy — or others will set the rules

From the Washington Examiner, Keith Sonderling, deputy secretary of labor, argues that the United States should support global standards for platform work that allow individuals to be independent contractors. Keith writes:

The gig economy is one of the defining innovations of the 21st century. It has revolutionized how people earn a living, offering flexibility, independence, and opportunity on a global scale. From U.S.-built platforms that power software development and cybersecurity freelancing to ride-hailing, delivery, and home services, the gig economy has opened doors for tens of millions of workers at home and abroad.

For many people, gig work provides supplemental income or a chance to build a small business on their own terms. It’s not just about convenience — it’s a new engine of economic empowerment that taps into the entrepreneurial spirit.

But that engine is under threat.

The International Labour Organization has begun negotiations in Geneva, Switzerland, on new global labor standards under the label of “platform work.” These rules will address critical issues such as worker classification, data use, pay transparency, and algorithmic management. The United States must lead in shaping these standards, or a rigid, one-size-fits-all framework could emerge to stifle innovation, shrink opportunity, and misrepresent the nature of gig work around the world.

We’ve seen the consequences of overregulation at home. Look at California’s catastrophic Assembly Bill 5, which tried to reclassify most independent contractors as employees. Instead of improving livelihoods, it triggered chaos. Freelancers across media, transportation, tech, and the arts lost contracts overnight. Self-employment rates cratered. Only after a voter revolt and economic fallout did lawmakers scramble to undo the damage, carving out one exemption after another — a slow-motion admission that they had gone too far.

Now, the ILO wants to make AB 5 the global gold standard for the gig economy. That’s a big problem.

After all, the ILO’s current draft fails to distinguish between self-employed gig workers and those more akin to traditional employees.  These proposals ignore a basic truth: Millions of gig workers choose self-employment. They want freedom. They want control — over their schedules, their clients, and their futures. But the ILO’s draft would rip that freedom away and replace it with California-style bureaucracy.

Worse, such an outcome would force U.S. companies to scale back or shut down operations abroad. That would mean fewer opportunities for millions who rely on digital platforms to earn income, both in the U.S. and globally. It would also hurt the customers and communities that depend on these services.

Read the full stories at America must lead on the gig economy — or others will set the rules – Washington Examiner

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