The case outcome could set a precedent for how contract workers are treated across the tech industry, where companies frequently rely on third-party staffing firms.
“Companies may need to rethink their mix of employment types and how they engage contract and gig workers,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “In a worst-case scenario, this work could be moved to locations where such regulations don’t exist. Alternatively, companies might face additional compliance requirements, costs, and audits if the NLRB wins against major corporations.”
Meanwhile, large corporations may need to adopt a more flexible stance on the issue, as the number of contract and gig workers is expected to grow, Gogia added.
A decision against Google could also energize unionization efforts within the tech sector, offering a roadmap for organizing workers in an industry that has traditionally resisted union activity. “The topic is also profoundly interlinked with the country’s political climate,” Gogia said. “If one were to consider the past stand that the Trump administration had on the subject, it is clear that the concept of joint employer may not see the light of day after all.”
Computerworld.com
Additional comments by Greyhound Research analyst:
This topic requires nuanced handling. Like with anything, it also has two facets. At one end, there is an element of truth that with the change in the composition of the workforce, more contract and gig workers are now being brought in instead of full-time employees. On the other hand, given the nature of employment, the client company only holds so much control over how these resources are hired, engaged and utilised during employment.
The topic is also profoundly interlinked with the country’s political climate. If one were to consider the past stand that the Trump administration had on the subject, it is clear that the concept of joint employer may not see the light of day after all.
The impact on companies might mean the need to rethink the mix of employment types and the method of engagement of the contract and the gig workforce. A worst-case scenario can also mean that much of this work is being shipped to locations where such concepts and compliances do not exist.
Another scenario that comes to light is additional compliances, costs, and audits if NLRB wins this against the major corporations. In the meantime, it might also be worthy for large corporations to think about having a softer stand on the topic since the flux of contract workers in gig workers is only expected to increase hereon.
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