Above, watch the full conversation “The 1099 Economy: Exploring a New Social Contract for Employers, Employees, and Society,” hosted by the Aspen Institute Economic Opportunities Program.

The Rise of the 1099 Economy

We are starting to see a shift in the nature of employment as a new economy driven by an independent workforce grows each year. These contingent workers benefit from flexible schedules, location-independence, and often, income similar to that of traditional employees. However, that freedom currently comes at the cost of forfeiting certain benefits. As Sen. Mark Warner (D-VA) said during a recent discussion on the contingent workforce, “even if you’re doing really well, you’re operating without a safety net below you.”

With this risk in mind, Warner joined Center on Budget and Policy Priorities Senior Fellow and former White House Chief Economist Jared Bernstein, Peers Co-Founder Natalie Foster, National Guestworker Alliance and New Orleans Workers’ Center for Racial Justice Director Saket Soni, and Intuit Inc. Chief Tax Officer David Williams to discuss the unique opportunities and regulatory challenges presented by this new economy.

To understand how this contingent workforce has grown, Foster explained the four types of individuals most likely to pursue this kind of “on-demand” work:

A person who is looking for more schedule flexibility A person who wants an additional source of income A person who is in transition, or between multiple jobs Entrepreneurs who see this as an opportunity to start their own businesses

With new technology and online platforms making it easier for individuals to participate in this type of work, some of the people outlined above have started to make the switch from having one full-time career to many “on-demand” jobs. And although the data varies widely from anywhere between 4 percent and 40 percent of the American workforce participating in this economy, it is clear that a large and growing number of individuals are opting into this style of work — whether by choice or by necessity.

Reclassifying the Contingent Worker

