Exploitative freelance jobs are on the rise. Here’s what you need to know

It’s no secret that freelancers are a huge asset to businesses. In fact, 78% of companies reported that they are inclined to fill staffing gaps with freelancers in 2023. At best, it’s a mutually beneficial relationship that has long existed in the workforce.

What freelancers are increasingly coming up against, however, are freelance job offers that bleed into employee territory. “I’m hearing on the grapevine that there is more and more of this happening,” says Lindy Alexander, a long-time freelance writer and who provides coaching to other freelancers. “So many companies have conflated work-from-home freelancers with an employee that is working from home.”

So what’s the problem with that? When businesses treat freelancers like employees, they are, intentionally or not, asking them to comply with the obligations of a salaried employee, while assuming the risks and uncertainties of being a freelancer. As companies look to meet the demand for remote work and cut costs, the freelancing community is likely to see more gigs advertised as freelance with all the makings of a full-time position.

Predatory practices in the wild

If you search for freelance work online, you’ll often find job offers that read something to the effect of “Freelance position: 40 hours a week, must be available 9 a.m. – 5 p.m. EST, location freedom—work from wherever you want!” But what do these jobs inevitably lack? Full-time benefits (like health insurance or 401(k) matching) and workplace protections.

Erin Cafferty, a freelance copywriter who runs a networking directory for freelancers, says her team has an entire Discord thread dedicated to screenshots of these kinds of job offers. “I am seeing job postings that want contractors to work 40 hours a week for $2,000 a month,” says Cafferty. “That’s not a contract position, and it’s minimum wage.”

While some companies may be unaware of the realities of freelancing and the effects of these labor practices, others certainly do. Rafael Espinal, executive director of Freelancers Union, says the organization frequently receives complaints from members about nonpayment, harassment, scams, and misclassification. “In any other industry, these issues would be immediately rejected as a major labor violation,” he says.

In some cases, questions of legality even come into play. According to the IRS, you cannot be classified as a freelancer “if you perform services that can be controlled by an employer . . . What matters is that the employer has the legal right to control the details of how the services are performed.” 

For freelancers who fall under this umbrella, such as those whose clients dictate their working hours, “common law employee” is a more accurate label—and one that is entitled to benefits.

Another phenomenon that puts freelancers at risk is known as “scope creep.” The phrase refers to when a business asks for work beyond the terms laid out in the contract without additional pay or contract revisions. 

Cafferty said clients often ask, “Since you write blog posts for us, can’t you just upload it to WordPress?” Though the request seems harmless, she pointed out the potential danger of going beyond the terms of a contract: “If you delete something or you get hacked while on their website or in their account, that’s now on you.”

With regular employees, there are built-in protections for these types of incidents, but that is not the case for freelancers and contract workers. So what should you do if you’re a freelancer concerned about entering into one of these arrangements? Here are four steps you can take: 

Know your rights 

The freelance world may be more like a wild jungle compared to its traditional work counterpart, but that doesn’t mean it comes with no protections. Legal measures such as the Freelance Isn’t Free Act in New York City, the Freelance Worker Protections Ordinance in Los Angeles, and Seattle’s Independent Contractor Protections Ordinance all provide protections for freelancers and frameworks for equitable relationships. 

With more freelancers coming on the scene, we could see similar protections put into place in more areas. Be sure to do your research on existing or up-and-coming legislation in your region, seek out local voices or organizations that advocate for freelancers, and never stop educating yourself on industry practices. Most importantly, say no to any job offer that requires you to work like a full-time employee without the perks.

Connect with other freelancers

One of the best things new freelancers can do is network with other freelancers. You never know who has connections where, and camaraderie in an often isolating job can be a huge asset. More experienced freelancers can also provide feedback on handling client conflicts and navigating the industry.  

To connect with other freelancers, you can check out groups like Freelancers Union and Freelancing Females, which provide helpful resources and online community spaces for freelancers, or you can join Slack groups like Creative Tribes and Leapers. You can also follow freelancing creators like Jamie Brindle. 

Set precise boundaries

“Freelancers can set boundaries by being proactive in defining their scope of work, rates, and availability from the outset of a project,” says Espinal, who also encourages freelancers to “renegotiate terms [of a contract] if they feel their time or expertise is undervalued.”

If you see it, call it out 

Lastly, you can take the fight to the source by talking to businesses that, knowingly or not, promote unfair practices. 

“You can email the recruiter or message the company to let them know this is not what freelancing is,” says Cafferty, who is a big advocate for educating businesses on how to work with freelancers. “There’s a difference between ignorance and bad apples.”