A recent study has revealed how the misclassification of gig workers is detrimental to their salaries and benefits. This is because employees are entitled to the federal minimum wage and overtime pay, while independent contractors are not entitled to these benefits. As a result, some employers use clever mechanisms to maintain power over their gig workers by classifying them as independent contractors. Employee misclassification is an ongoing issue in certain industries like trucking and delivery, and it costs workers thousands of dollars in lost wages and social support benefits.
See "Employee misclassifications have become prevalent in the trucking and delivery industries, allowing some employers to underpay their workers", Juliana Kaplan and Madison Hoff, Business Insider, January 26, 2023