Platform economy database
Database of initiatives and court cases in the EU
Eurofound’s platform economy database provides information on 386 initiatives and court cases that exist or have been implemented in relation to activities in the platform economy. The database was last updated in February 2024 and provides metadata for each entry, such as geographical scope, year, type of initiative, actors involved, sector and companies concerned. Initiatives include legal instruments such as legislative changes or court decisions, as well as voluntary interventions undertaken by different stakeholders to address issues around platform work.
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The database currently contains 386 entries and was last updated in February 2024.
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On 10 January 2024, the United States Department of Labor has issued its final rule on the Fair Labor Standards Act which addresses the topic of worker classification. Specifically, it sheds light on the employment status independent contractor versus employee and which criteria need to be considered to determine the employment status. The rule and changes to the Act aim to reduce the chance of misclassifications of employees as independent contractors.
This 2024 rule by the Department of Labor repeals the 2021 worker classification rule, which focused on two core factors for worker classification, the type and extent of control over the relevant task, as well as the possibility of profit or loss for an individual. The new revision contains six factors to examine the entirety of the relationship's conditions, with all factors weighing equally:
The six factors allow for a more comprehensive evaluation and shift the focus thereof. For instance, the fifth factor, whether the work performed is crucial to the employer's business, now asks whether the activities of the individual worker are integral, and not whether each individual worker is crucial to the organisation.
When it comes to platform work in particular, the Department of Labor emphasises the importance of economic dependence of workers. The Department explicitly states that, even if an individual worker has the ability to perform work for multiple platforms, this does not erase the economic dependence platform workers have on their work, nor does it mean that the performed work is subject to a lower degree of control.
The platform economy is one of those moving targets, which, despite receiving increasing media and policy attention, has proven difficult to regulate. Given the heterogeneity of employment relationships, business models, types of platform work and cross-border issues, this is not surprising.
Technological change is accelerating as the capacity of electronic devices to digitally store, process and communicate information expands. Digitalisation is transforming the EU economy and labour markets: nearly one-third of EU workplaces are categorised as highly digitalised. What are the implications of the digital revolution for employment and work?
The rapid rise of the platform economy has led to a marked transformation of European labour markets, and existing regulatory frameworks and voluntary initiatives have yet to catch up. While platform work offers opportunities for workers and employers and potentially contributes to innovation, economic growth and competitiveness in the EU, it has been criticised from the beginning because of the poor employment and working conditions often experienced by workers.
While 2020 may come to be seen as the year platform work gathered pace and started to go mainstream – thanks in large part to COVID-19 containment measures sparking an increase in food and grocery delivery – 2021 could be the year that regulation of platform work is set in motion.
