Actions Freelancers Should Take to Protect Against Crises Like COVID-19

COVID-19 aside, the gig and freelance economy needs to be extra prepared and aware of the impacts of unforeseen crises.

Workers within the gig economy have seen their fair share of road bumps, from a general lack of worker protections to unpredictable income. The sudden onslaught of the COVID-19 pandemic has challenged gig workers at levels previously unforeseen. In the midst of the life-altering pandemic, millions of full-time workers at businesses across the nation are transitioning to remote working environments with relative ease.

But what of the estimated 57 million U.S. freelancers? They do not have the same protections or resources as traditional employees. Gig workers are a remarkable, diverse group of people, from independent contractors and project-based workers to temporary or part-time hires. Freelancers are the heartbeat of the American economy, making up 35% of the workforce and driving nearly $1 trillion in income.

Despite our economic contributions, however, freelancers are likely to be left out of stimulus plans which seek to bail out workers affected by massive shutdowns and layoffs. The situation is so dire that Uber and Airbnb are advocating to congressional leaders on behalf of their freelance workforce. Their pleas, however, seem to be falling on deaf ears.

The big question is, how can we protect ourselves from COVID-19 in addition to other, future crises that may impact our livelihood? Whether you’re already feeling the squeeze on your wallet or you can scrape by for a few more weeks, there are resources at your disposal. You may need to find creative channels in order to make ends meet and better prepare for an uncertain future.

Take Actionable Steps Towards Livable Wages

Now more than ever, global citizens are developing a comprehensive understanding of why a livable wage and universal basic income (UBI) are so important. In times of crisis, individuals from all walks of life deserve to have basic access to food and healthcare as well as personal care products. Freelancers living in poverty, or on the brink of it, may barely be scraping by as-is without drastic reductions to wages or work availability.

From an economic standpoint, a living wage is one that “allows an individual or family to afford adequate shelter, food, and other basic necessities.” It should not be confused with minimum wage, which is set by state and/or federal governments and doesn’t always take livability or quality of life into account. The minimum wage also doesn’t account for inflation, nor does it consider those who cannot work due to disability, personal situations, or a global pandemic for that matter.

To bridge the gap, some freelancers have begun to advocate for the implementation of a UBI, which would cover an individual’s basic living requirements and needs for the duration of their lifetimes. If all citizens received a UBI, freelancers could survive even if available work dropped off, or they were faced with a major health crisis. A UBI is designed to take the place of social welfare programs and help alleviate poverty. Advocates of the idea may see numerous similarities between the principles of UBI and the COVID-19 stimulus package. The time may be ripe to promote actionable change towards a UBI or living wage on a global scale.

Stay Safe and Sanitary

If advocacy isn’t really up your alley, you can focus on self-preservation, starting with social distancing. For many gig workers, social distancing comes with the territory. Writers, editors, and similar creatives, for example, require very little social interaction to perform their duties. It’s easy for that subset of freelancers to stay at least six feet away from others.

Other workers find social distancing to be more challenging or even detrimental to their line of work, however. Rideshare drivers are facing an especially challenging environment, as journeys deemed “non-essential” are increasingly prohibited. Yet, while the rideshare industry’s viability is in flux, keeping yourself safe from potential exposure is refreshingly simple.

Along with social distancing, good personal hygiene serves as an effective wall against COVID- 19 and other illnesses. Try to avoid touching your face and wash your hands as often as possible to curb the spread of germs and bacteria. You may be tempted to use hand sanitizer in lieu of frequent hand washing, but it’s not as effective. In fact, health professionals claim, “due to the limitations of hand sanitizer, handwashing is critical” for keeping yourself healthy. This is especially important if your freelance gigs put you in the frequent company of others.

Work to Get Your Finances in Order

No matter your preferred gig work, those freelancers without a significant nest egg are likely to be the hardest hit by the economic repercussions of COVID-19. Even if there’s little you can do right now to increase that nest egg or snag additional work, consider how your taxes might be affected during this period of uncertainty.

If you didn’t file your taxes early, the good news is you still have plenty of time: The U.S. deadline has been extended from April 15 to July 15 according to the Internal Revenue Service (IRS), and you won’t be subject to penalties or interest. The new deadline includes all taxpayers from businesses to independent contractors.

If you’re new to freelancing or if you receive income from a number of different sources, tax season is rife with opportunities for learning. You may want to use some of your newly discovered free time to look into the small business tax laws that may apply to you. For example, if you are registered as a limited liability company (LLC), you may be subject to different tax regulations than freelancers with sole proprietorship status.

Protecting Yourself in Uncertain Times

Freelance work affords us the opportunity to be our own boss and gives us autonomy. Who could have foreseen the impact that a tiny virus could have on the workforce in general and gig work specifically? It’s time to expand the conversation around a living wage and overall protections for freelance workers before another crisis hits.