Dive Brief:
- Given the choice between being classified as 1099 or W2, 80.2% of on-demand workers prefer to be classified as 1099 independent contractors, according to a survey from Crowded.com. Only 11.72% would prefer to be classified as W2 employees, and 8.45% do not understand the difference between W2 and 1099.
- Crowded.com's findings point to the fact that majority of independent workers still prefer to be classified as contractors, enjoying the freedom and flexibility that being a contractor offers, while resisting the restrictions and limits that being an employee can bring (such as limiting the the number of hours they can work).
- Through a series of on-demand worker focus groups as well as a survey of 1099 workers, Crowded.com got its data by tapping into its on-demand worker marketplace for information.
Dive Insight:
"In 2015, worker classification has become a hot topic among pundits and politicians discussing the on-demand economy," said Mark Roth, COO & co-founder, Crowded.com. "So far, most of the prevailing opinions suggest that there is a wholesale misclassification of workers who are currently working as 1099 independent contractors, but who should instead be classified as employees receiving W2s."
Yet, Roth says, the pundits and politicians are not in the trenches, picking up passengers or dropping off packages for the on-demand services. "Has anyone thought to ask the workers what they think about this important issue?" asked Roth.
Of course, he adds, there are several lawsuits progressing on behalf of those on-demand contractors who in fact believe that they should be considered employees. No matter how they receive payment, many workers make the point that the independent contractors are not getting the protections, such as workers' compensation and the unemployment benefits, that they deserve under their current classification.
