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Gig workers are often left out of holiday tipping lists — Quartz

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It’s customary for Americans to tip more during the holidays—housekeepers, childcare providers, schoolteachers, hairdressers, garbage collectors, postal workers, and others in service roles will often receive extra cash this time of year.

About 60% of Americans gave tips to one or more service providers during the holidays, according to a 2018 survey by Consumer Reports. Overall, Americans tipped an average of $45 in total, with amounts depending in large part on how regularly the client and service provider typically interact. (If you live in places like New York City, the expectations might be a lot higher.)

But these days, many of the workers in these service roles—whether they do house cleaning (eg, Handy) or dog walking (eg, Wag or Rover)—are left off holiday tipping lists.

The app-based gig economy seems to have altered the norms and expectations of both consumers and workers. According to a study out this year from researchers at MIT’s Sloan School of Management and Michigan State University, “perceptions of worker autonomy have driven the decline in tipping norms associated with gig work.”

The study found that because gig workers operate on their own schedule and are paid per task, “market norms crowd out the internalized social tipping norms that compel some consumers to tip out of obligation or duty.” 

Edan Deva, a driver in the San Francisco area for both Lyft as well as Zūm, a ride-hailing service for children, says that he regularly picks up two kids in the morning from their parents and drives them to school every day, and has done so for more than a year. But he says he has not received more tips than usual during the holidays with either service.

Though Deva has regular clients, many apps have created an environment where service workers often do not interact multiple times with the same customers, or see them at any regular cadence, which is another drain on tips. 

Vanessa Bain, who delivers groceries for Instacart says that when she first started using the app in 2016, she had a few regular customers each week in San Francisco’s South Bay. Back then, there were about 40 shoppers in her zone ready to fill customers’ orders. Now, she says, every time she opens the app, there are around 500 workers available for deliveries. She says she hasn’t received any holiday tips during November and December. Rather, those months tend to be slow, as customers are often traveling, she says.

Still, tipping experiences will vary. For instance, Jen Tserng, a dog walker for both Rover and Wag! in Manhattan, has between five and eight customers each week, and says she generally receives extra tips in December. From her more regular customers, she might receive an equivalent of a week’s pay. “I think it’s due to the generally longer-lasting relationship with my clients,” she says.

Care.com does not track how much in holiday tips the nannies, babysitters, and other caregivers on its platform receive, but it does provide customers with a holiday tipping guide. It says a good rule of thumb is cash or a gift card in the $10 to $30 range, depending on your budget and your relationship with the recipient.

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Workers

Target is giving frontline workers $70 million in bonuses — but their growing gig workforce say they just got hit with a major pay cut

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  • Target just gave 350,000 frontline workers $70 million in bonuses.
  • The company announced the bonus Monday, the same day some of its Shipt gig workforce protested outside Target headquarters in Minneapolis calling for fairer pay.
  • Willy Solis, a lead organizer with the nonprofit Gig Workers Collective, said gig Shoppers were a part of why Target was able to enjoy 273% annual growth in same-day service sales — including curbside pick up, drive up, and Shipt.
  • If you are a Shipt Shopper and would like to share your story, email aakhtar@businessinsider.com.

Target announced Monday that it would offer more than 350,000 frontline employees a $200 bonus each, or $70 million in total.

Target previously gave all hourly full-time and part-time store and distribution center workers $200 bonuses in July. Eligible employees include hourly members in stores and distribution centers, seasonal hires, and hourly team members who “support Target’s guest and team member contact centers.”

Meanwhile, some gig workers for Target-owned delivery service Shipt held a demonstration Monday outside of the company’s headquarters in Minneapolis protesting a new pay model.
Pay for Shipt workers, called Shoppers, is now determined using an algorithm rather than a flat rate, the company confirmed to Business Insider. Shipt classifies Shoppers as independent contractors who are not eligible for employee benefits, including minimum wage or healthcare.

Read more: Leaked Target memo reveals how the retailer is trying to obliterate germs in its stores by wiping down everything from ATMs and handcuffs to Bullseye, the company’s mascot

Some Shoppers have said the algorithmic pay model has lead to lower wages. Molly Snyder, the chief communications officer for Shipt, said Shoppers make $21 per shop including base pay, promo pay, and tips, which did not change on average during the new pay model, but some workers may have seen a decline in pay. Snyder also said there were more Shoppers for Shipt “than ever before” last weekend.

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One study, conducted by Coworker.org and an MIT PhD student, found the new pay model resulted in lower pay for 41% of Shoppers, and the number of people earning less is growing.

Willy Solis, a Shipt Shopper and a lead organizer with the grassroots organization Gig Workers Collective, said it felt insulting that Target give bonuses at the same time Shipt Shoppers are calling for fairer pay. Solis said Shoppers were a part of why Target was able to enjoy 273% annual growth in same-day service sales — including curbside pick up, drive up, and Shipt.
“We’re grateful and happy for Target employees to be recognized and for receiving that extra pay, but at the end of the day, we as Shipt shoppers have contributed significantly to make Target a very profitable company,” said Willy Solis, a Shipt Shopper and a lead organizer with the grassroots organization Gig Workers Collective.

Read more: Target just blew the doors off its first quarter earnings. Target CEO Brian Cornell says it was due to these two key factors.

Target bought Shipt in 2017 for $550 million to compete with Amazon and Walmart on same-day delivery. Target is currently valued at $82.5 billion.

If you are a Shipt Shopper and would like to share your story, email aakhtar@businessinsider.com.

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More Than One-Third Of Claims For Gig Workers, Self-Employed Unpaid – CBS Chicago

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TOM PURCELL: The fate of gig workers could turn on ballot question | Opinion

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Become an employee with full paid benefits, or remain a mostly independent gig worker? That debate’s raging in California as November’s general election approaches, and its outcome is likely to affect the entire country.

According to The Washington Post, “Uber, DoorDash and other gig economy companies are bombarding TV airwaves, social media and even their own apps with ads and marketing materials promoting a ballot initiative [Proposition 22] that they say would improve drivers’ financial situation and working conditions but that would also deny them the right to be classified as employees in California.”

Proposition 22 would give gig workers limited benefits and wage and worker protections, but establish them as an independent class of workers – and undo a 2019 California law, Assembly Bill 5 (AB5), that “would guarantee drivers access to the minimum wage, employer-provided health care and bargaining rights.”

I’ve long been self-employed, with the exception of some recent cybersecurity consulting contracts in which I was paid as a full-time employee with benefits, but that’s been my choice.

Being fully self-employed is not for the faint of heart. Besides cybersecurity consulting and writing a newspaper column, I have an apartment-rental business. I recently earned a real estate license and am selling properties, too.

I manage my own invoicing and taxes. I know to the penny – once my CPA explains it to me and I drop whatever mug of coffee I’m holding – how high my income taxes are. Few employees are aware of how much they pay in taxes or what their benefits cost their employers – which would be helpful to know before voting for new government policies that will increase both.

I manage my own health care insurance, which has gotten plenty expensive in recent years for individuals who don’t qualify for subsidies, in part because of government attempts to expand health insurance to everyone.

But, again, I choose to be self-employed. I like the freedom it provides. But it also makes me keenly aware of the unintended consequences of government regulations and policies.

California’s 2019 AB5 law would require Uber, for instance, to hire drivers as full-time employees with health insurance, paid sick leave and other benefits. Benefits are wonderful, but come at a price.

Uber claims that “if the company were forced to make all drivers across the country employees, for example, it could only support 260,000 full-time roles,” reports The Post. “That compares to 1.2 million active drivers the company was hosting on its app before the coronavirus pandemic.”

Uber also says fares would increase and drivers would be less available and timely – which means you might have to wait a while for your ride home to arrive after a night of enjoying the pub.

What it comes down to is that some politicians believe individuals shouldn’t have the freedom to exchange their skills and services for money from organizations, because organizations take advantage of those individuals. Joe Biden and Kamala Harris support AB5, not the watered-down Proposition 22.

Others think that in a free society, individuals should be able to offer their professional talents to anyone willing to pay for them, and government shouldn’t restrict the terms they negotiate. President Trump’s campaign supports that approach and is critical of AB5 (but has not, to my knowledge, supported Proposition 22).

That’s something else to think about when you vote in November’s election.

TOM PURCELL is a Pittsburgh Tribune-Review humor columnist and is nationally syndicated. Readers can contact him at tom@tompurcell.com.

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