Twenty First-Century Social Contract

Globalization, technology, shifting demographics and cultural transformations have profoundly changed the way in which individuals contribute to society. Today, we are gradually moving away from traditional models of employment while new business models are starting to emerge. An example of this is what it is often referred to as the “1099 Economy”, where temporary work are becoming the norm and workers opt for becoming contractors and not employees (eventually receiving a 1099 form from the IRS instead of the W-2, hence the name). Companies like Uber, Handy or TaskRabbit are examples of this new model.

However, this massive disruption in our labor markets comes at a cost. More often than not, these temporary contractors do not qualify for employment protection, and hence, they do not accrue sick days, health benefits, they cannot accumulate a pension plan or take leave days and let alone receive unemployment benefits. As a result, temporary workers are less protected and more vulnerable to shocks.

This new phenomenon and economic transformation will unnecessarily call for new creative ways in which to think of labor markets, job protection and viable ways to harmonize labor market legislations. Governments should adapt to this shift, whether if it’s a permanent or a

In addition, they propose a new set of “shared security standards” like paid leave, livable minimum wage, overtime pay, pay equity and fair scheduling that complement and strengthen the shared security account regardless of the changing nature of employment. Together, these accounts would comprise a new social contract designed to fit the flexible employment relationships of the new