Legal Blog Articles

Three Strategies for Protecting Your Company in the Gig Economy

Businesses across many sectors are turning to gig workers more and more to help fill in gaps in their workforce and meet other goals. In many ways, this is an ideal arrangement for both employers and gig workers. There are numerous cost-saving benefits for employers as they do not pay for federal or state payroll taxes, workers’ compensation or unemployment insurance, or healthcare benefits.

Employers generally do not pay for their gig workers’ equipment, travel, or other work-related expenses. There is also a decreased risk of labor lawsuits. 

Using contract workers can present some challenges, such as a decreased incentive to go the extra mile, having regular employees feel threatened, and working around the potential for limited variability. Another major drawback to hiring gig workers is the possibility of putting your company at risk, especially with remote gig workers.  

The gig economy has changed the way businesses do many things. If you are hiring contract workers and it has not changed the way you protect your company, you could be in for a rude awakening. These three strategies can help safeguard your company if you are working with remote contractors.  

Provide the Right Access  

Your gig workers should only have access to the information they need to do their job. Giving them access, even accidental access to anything else, no matter how minor it may seem, increases your risk. To ensure no one is given access to information they do not need, your system administrator will need access to review what type of access each contract worker has. Keep a spreadsheet or other tracking system and revoke access once a contractor is no longer working with the company.  

Employ 2-Factor Authentication  

Two-factor authentication (2FA) helps to determine if the person logging into the account has the rights to do so. In addition to a username and password, systems with 2FA require the user to provide a second factor. This could include a PIN, answers to secret questions, a code sent to their smartphone or a fingerprint. 

Enforce Recertifications for Privileged Assets  

To effectively ensure that only the people you want have access to certain information at the right time, you will need to set and reset privileged-access parameters continually. Typically, this is done by looking at various risk factors such as the user’s IP address, any location changes, the way someone types, or the time they log in. 

Do You Have Gig Workers? Hackstaff, Snow, Atkinson & Griess, LLC Can Help

In addition to these strategies, it is essential to have a comprehensive contract with your company’s gig workers. When done right, you can rely on this contract to protect your company and safeguard the information that needs to be protected. At Hackstaff, Snow, Atkinson & Griess, LLC, our business lawyers can draft contracts for you to use with your gig workers that are designed around your specific needs. We know the benefits of hiring gig workers and we also appreciate the risks your company takes. Our attorneys can assess your needs and help create contracts that address them. If you want to protect your business, call our office today to learn more. 

Published by
Hackstaff, Snow, Atkinson & Griess, LLC

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