FTC Increases Oversight of the Gig Workforce

The Federal Trade Commission (FTC) announced on Sept. 15 that it has adopted enforcement priorities to fight on behalf of gig workers against deception about pay and hours, unfair contract terms, and anti-competitive wage fixing between gig economy companies.

The FTC will aim to prevent harm to gig workers in several areas, including by:

  • Holding companies accountable for claims and conduct about costs and benefits. Gig companies must not be deceptive in their claims to prospective gig workers about potential earnings, and they must be honest about costs borne by workers.
  • Combating unlawful practices and constraints imposed on workers. Gig companies using artificial intelligence or other advanced technologies to govern workers’ pay, performance and work assignments must keep promises they make to workers. Companies must also ensure that any restrictive contract terms, including those limiting workers from seeking other jobs, do not violate the FTC Act or other laws.
  • Policing unfair methods of competition that harm gig workers. The FTC will investigate evidence of agreements between gig companies to illegally fix wages, benefits or fees for gig workers that should be open to competition. The FTC also will investigate exclusionary or predatory conduct that could cause harm to workers, reduced compensation, or poor working conditions for gig workers.