Illinois sponsor of minimum wage bill looks to aid ‘gig economy’ workers, too

From Crain’s Chicago Business, Greg Hinz reports that an influential Illinois representative is considering legislation to help gig workers. Greg writes:

A key Illinois lawmaker says he’s preparing to follow the lead of California, which recently adopted legislation to require that workers for Uber and others in the “gig economy” be legally treated as employees rather than independent contractors.

In an interview, state Rep. Will Guzzardi, D-Chicago, the chief sponsor of the law that will raise the Illinois minimum wage to $15 by 2025, says California is on to something in concluding that workers need help, and he has asked staff to begin drafting legislation to be submitted next spring.

Guzzardi said he doesn’t yet know what the provisions will be but suggested the only question is how to act, not whether to act.

For instance, those working in the ride-hailing industry end up taking home “between $9 and $12 an hour” after expenses, he said—clearly well under the new Illinois standard.

As independent contractors without many rights, “people can be mistreated,” Guzzardi told me in a phone interview. “They don’t get the same benefits or protections” as employees.

Guzzardi charged that certain firms in the gig economy “use (independent contractor) status as a loophole to get around labor law. It’s an abuse that needs to be regulated.”

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