Brought to you by Labor Law Posters Online:
The gig economy is like that popular new kid in school everyone wants to hang out with all the time. More and more people are ditching the traditional 9-to-5 grind and choosing to work as independent contractors, such as freelance designers, dog walkers, or delivery drivers who bring you steaming hot pizza on a Friday night. Small businesses are also loving this trend because it gives them access to a tremendously flexible workforce. However, with this new way of working comes a lot of confusion about labor laws. Especially when it comes to labor law poster requirements for 2025.
One question heard a lot is, “Do I really need to hang up those labor law posters if I only hire independent contractors?” For example, why do I hang up a Pennsylvania poster if the worker does not even go into an office? Some may say that it seems like a no-brainer. Those posters with all the employee rights stuff wouldn’t apply to gig workers who are their own bosses. The answer is a bit more complicated than you might think.
Decoding the Gig Economy
First, let’s make sure we’re all on the same page about what the “gig economy” actually means. Think of it like this. Instead of having a regular job with a set schedule and a boss breathing down your neck, people are taking on short-term gigs, such as writing an article, driving someone to the airport, or designing a logo. They’re like mini-entrepreneurs who set their hours and choose their projects. This is often done through apps and websites, which makes it super easy to connect with clients.
These gig workers are usually classified as independent contractors and not employees. That’s a big deal because it changes which labor laws apply to them (and to you as a business owner).
Labor Law Posters: The Lowdown
You’ve likely seen those posters a million times hanging in almost every business, from the pizza place down the street to your dentist’s office. They’re usually crammed with tiny texts about things like minimum wage, overtime pay, safety rules, and what to do if your boss is acting like a total jerk. These posters are like cheat sheets for employees, reminding them of their rights and telling employers that they will be punished for illegal activity (such as harassment and discrimination).
But I’m Just a Small Business…
You might be thinking, “Okay, but I run a small Etsy shop from my basement. Why should I care about these posters?” Even if your business is mostly online and you rely on independent contractors, there are a few scenarios where those posters become your new best friends.
Envision that you finally decide to rent a small office space to meet clients or maybe store your handmade jewelry. Or perhaps you realize you need an extra pair of hands and hire someone part-time to help with packaging and shipping. Suddenly, those labor law posters are just as important for you as they are for that fancy restaurant downtown.
Federal vs. State: The Law Double Feature
Dealing with labor laws can sometimes feel as though you are trying to solve a really complicated puzzle. And it gets even trickier because you have to deal with both federal and state laws. Think of federal regulations as the basic rules that everyone in the United States has to follow, such as those posters from the Department of Labor about minimum wage and workplace safety. It’s like the school dress code that applies to everyone.
But then, each state gets to add its own twist. Some states might have stricter rules than the federal government and require you to display extra posters. For example, California is really serious about meal breaks, so if you’re running a business there, you need to have a poster explaining those rules. And if you are running your business in Pennsylvania, you will specifically need a Pennsylvania poster that displays the laws there.
The Gig Worker Puzzle
Here’s where things get really interesting (and maybe a bit confusing). Since most gig workers are like free agents, many of those classic labor law posters, such as the ones about minimum wage and overtime, might not apply to them directly.
Some posters, like those about discrimination and harassment, are still super important, even for independent contractors. For example, the Equal Employment Opportunity Commission (EEOC) poster says that businesses with 15 or more employees cannot discriminate against someone because of their race, religion, gender, disability status, or other factors or characteristics. And that applies whether someone is your employee or just a contractor you hired for a one-time project. Many states and municipalities have similar laws that apply to businesses with as few as one employee.
Additionally, many gig workers do not have physical workplaces that they attend. This makes the idea of displaying physical posters hard to accomplish. The U.S. Department of Labor (DOL) is the federal agency tasked with providing compliance guidelines to employers. In 2020, the DOL changed its posting guidelines to require all employers to provide their employees with access to electronic and physical labor law posters even if they do not work remotely. This could include gig workers. A growing number of states have similar rules.
Electronic labor law posters should be just as clear and accessible as those placed in physical locations, so simply attaching a PDF to an email would not be enough to comply with the regulations. Instead, employers should put the information in online locations that gig and remote workers can visit regularly.
The Consequences of Ignoring the Rules
Not displaying the required posters can get you in some serious trouble. You might have to pay fines, deal with lawsuits, or even pay back wages to workers. It’s definitely not worth the risk.
Tips for Staying Out of Trouble
There are some tips you can implement to keep yourself from getting into trouble. Following them can be pretty straightforward. To stay in line with the rules:
- Figure out what laws apply to you. This will depend on whether you have an actual office or have any employees, even if they only work a few hours a week. You also must consider whether your contractors sometimes seem more like employees.
- Get those posters. Labor Law Posters Online’s website will help determine what posters must be displayed or provided in your workplace.
- Hang them up where everyone can see them or provide them digitally. Don’t hide them in a dark corner of your basement.
- Keep an eye out for updates. Labor laws can change, so make sure you check for new rules from time to time.
The gig economy might be new and exciting, but it also comes with its own set of challenges. By understanding and following the labor law poster requirements, you can protect your business and make sure everyone is treated fairly.