According to the Freelancing in America 2019 report, which is released annually by Upwork and the Freelancers Union, 57 million American workers — or 35% — are freelancing.
That being said, many side hustlers and gig economy workers are armies of one and might be in the dark about their rights. If you find yourself steering through legal hot water, how can you best protect yourself and your side business?
Even if you’re side hustling to earn some cash on the side, it’s important to know how to best advocate for yourself should you find yourself in a financial or legal bind. Here’s how freelancers, particularly gig economy workers and side hustlers, can go about doing so:
UNDERSTAND HOW THE LAW APPLIES TO YOU
First things first: Gig economy workers need to know a few areas of the law and how the law applies to them, explains Tristan Blaine, Esq., an attorney for freelancers, author of Law Is Not for Lawyers (It’s for Everyone) and founder of Law Soup.
The most basic issue — and one that is in flux right now — is whether the law considers you to be an employee or an independent contractor. “As an employee, you have the protections of employment law, including required breaks and overtime pay,” says Blaine. “However, for many gig workers and freelancers, these issues are not a major concern, and they prefer certain freedoms of independent contractor status, such as the ability to take gigs or not.”
STAY ON TOP OF CHANGES IN THE LAW
Keep in mind that state and federal laws on this issue are being written and rewritten right now, points out Blaine. “The good news is that gig workers currently have a unique opportunity to weigh in and advocate for their preference as to how their work should be treated by the law,” he says.
For example, the new gig worker law in California (AB 5) makes it far tougher for gig workers to be classified as independent contractors. The rules are changing on how to classify someone as an employee or an independent contractor. “But legislators are looking to ‘fix’ the new law,” says Blaine.” If you prefer to be an independent contractor rather than an employee, you should reach out to your elected officials to let them know.”
KNOW YOUR RIGHTS AS AN EMPLOYEE
If you’re considered an employee, make sure to read up on all your employee rights, suggests Blaine. Employee rights vary by state and can change, so you’ll want to stay on top of any changes to state law. Does something seem off with an employer? If so, reach out to an employment law lawyer to discuss, says Blaine. “Most employment lawyers will offer a free consultation to determine whether you have a case,” says Blaine. “If they think you have a good case, they often take it on at no upfront cost to you, but will instead take a percentage of any money you win.”
That being said, know what the legal fees will be before you decide to work with an attorney. Depending on what you’re hiring them to do, some attorneys have a retainer or charge an hourly rate. If you’re asking an employment law attorney to review a contract, they might charge a flat fee.
FAMILIARIZE YOURSELF WITH CONTRACT LAW
Let’s say you’re considered an independent contractor instead. A few things to note: As an independent contractor, you aren’t entitled to any employer benefits, such as health coverage, sick and vacation time, nor are you protected against discrimination laws designed to protect workers.
In that case, you should familiarize yourself with contract law, recommends Blaine. That’s so you can have an idea of whether a work-related contract is fair or not. It will also help you wrap your head around what a contract should or shouldn’t include in the type of work you do and the industries you do work in.
“Of course, it’s always a good idea to have a lawyer review and potentially draft these contracts, if possible,” says Blaine.