US to shield gig workers from ‘unfair’ algorithms

The U.S. Federal Trade Commission (FTC) said it would shield gig workers from unfair contracts, pay, working time, and discriminatory algorithms.

The new policy statement drew support from three commissioners, while two dissented. According to the document, the agency will deploy “the full portfolio of laws to prevent unfair, deceptive, anti-competitive, and other unlawful practices against gig workers.”

The FTC plans to pursue companies that misrepresent a worker’s earnings or unlawfully use AI to assess labor performance. The agency also intends to investigate the sector for evidence of wage-fixing among companies.

“Regardless of how gig companies classify them, gig workers are consumers with rights to protection under the laws,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.

He added that the agency is committed to coordinating efforts with other government agencies to ensure fair treatment of gig workers.

In May 2022, the Biden administration warned about the threats of using AI tools in recruitment.

In September 2021, California passed a law regulating algorithms for evaluating worker performance.

In July it emerged that Amazon used an AI system to dismiss couriers without good reason.

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