Subject: Request for Regulation and Protections for Gig Economy Workers
Dear Policy Creators:
(Thanks for providing this platform to make our country great again.)
This request seeks regulatory action to address arbitration agreements imposed on independent contractors and employees, with a focus on the exploitation of gig economy workers. Such agreements frequently deprive workers of their legal rights, forcing them into third-party arbitration that inherently favors corporations. These agreements often include hidden provisions, convoluted language, and exploitative practices that deny workers meaningful access to justice.
While it can be claimed by some companies, (such as Angi, Inc., who employs thousands of workers across 50 states, as an example) provide a mechanism to opt out of arbitration, these provisions are buried within lengthy, complex agreements that are by design, difficult to find and navigate. Understanding and acting on these provisions requires a level of education and English proficiency that many contractors do not have. This makes it virtually impossible for many workers to exercise their rights effectively.
I am writing to urge the U.S. Government to regulate the use of arbitration agreements that waive workers’ rights to pursue legal remedies in court, effectively allowing companies to operate above the law. Additionally, there must be provisions ensuring that workers’ grievances have a formal venue to be heard, and that companies are required to allow workers to hold supervised (virtual) meetings to discuss work-related concerns without fear of retaliation. These protections, traditionally associated with labor law and union rights under the National Labor Relations Act (NLRA), align with the spirit of free speech and collective rights. However, the gig economy blurs these lines, leaving many workers without similar safeguards.
Such practices strip contractors of meaningful access to their legal rights, particularly in cases involving companies who have faced numerous class-action law suits and are known for questionable worker treatment, marketing and revenue-generating tactics that frequently lead to disputes with both customers and workers.
Key Issues:
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Hidden Opt-Out Mechanisms: Companies such as Angi, Inc. bury arbitration opt-out provisions deep within lengthy agreements. These provisions are presented in language inaccessible to many workers, including non-native English speakers, effectively coercing them into compliance.
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Exploitation of the Gig Economy Model: In the traditional workplace, employees could unionize to secure fair pay and conditions. However, gig economy corporations use the pseudo-employment model to exploit thousands of workers across multiple states. This structure allows companies to enforce unfair practices without oversight or accountability, depriving workers of basic protections and benefits typically afforded to employees.
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Excessive Control Without Accountability: Gig economy workers are required to meet strict licensing, insurance, and conduct criteria under constant threat of job loss for minor infractions. Despite this level of control, pseudo-employers like Angi, Inc. minimize their liability by design. Workers and customers are left with no recourse for property damage, personal injuries, or financial losses, creating a system of unchecked corporate power.
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Lack of Incentive for Ethical Behavior: Without the threat of lawsuits, companies face no legal motivation to improve their policies or conduct. This absence of accountability enables misconduct, unpaid wages, failure to uphold policies, and deceptive practices.
Proposed Regulatory Measures:
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Clear and Accessible Arbitration Agreements: Companies should be required to use plain, comprehensible language in agreements. Critical provisions, such as opt-out clauses, must be prominently displayed and easily understood by all workers—or companies should be prohibited from imposing such agreements altogether.ward language, with translated versions provided for non-English speakers.
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Standardized Opt-Out Procedures: Opt-out mechanisms should be standardized across industries, with simplified processes that are transparent and accessible.
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Increased Accountability for Gig Economy Corporations: Regulatory measures must ensure that gig economy companies provide protections equivalent to those offered to traditional employees, including mechanisms for legal recourse, fair treatment, and adequate compensation.
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Restrictions on Arbitration Clauses: Arbitration agreements should not absolve companies of accountability for issues like unpaid wages, personal injury, or policy violations.
These measures will promote fairness, transparency, and equity for independent contractors who are essential to many industries yet are often left vulnerable under the current system. This is especially important and timely now, as the government seeks to restore its manufacturing base in the USA, which will rely heavily on fair and equitable treatment of workers across all sectors. By ensuring fair treatment, these measures will motivate workers to perform better, improving overall morale and productivity.
Thank you for your attention to this critical issue.
Sincerely,
Lawrence Touitou