Julia B., a driver for Amazon Flex, was carjacked mid-delivery. Although she recovered her vehicle, she lost her wallet, phone, and packages. The days she took off to recover were unpaid, and she received no medical or psychological support.

Major digital labour platforms in the United States are violating the rights of gig workers under the guise of flexibility, according to a scathing report released this week by Human Rights Watch (HRW). The report, titled “The Gig Trap: Algorithmic, Wage and Labor Exploitation in Platform Work in the US”, details how major platform companies are evading labour laws while subjecting workers to precarious conditions and economic instability.

Focusing on seven dominant platforms – Uber, Lyft, Amazon Flex, DoorDash, Instacart, Favor, and Shipt – the report accuses these companies of building a business model that avoids employer responsibilities, keeps wages low, and controls workers through opaque and unpredictable algorithms.

“Digital labour platforms have created a business model that evades employer responsibilities while keeping workers under tight algorithmic control,” said Lena Simet, a senior researcher on poverty and inequality at HRW. “They promise flexibility but, in reality, they leave workers at the mercy of unstable and subminimum wages, little social protection, and in constant fear of termination without recourse.”

Below Minimum Wage and No Safety Net

The HRW report reveals that many workers earn less than the local minimum wage after deducting expenses such as fuel, insurance, and vehicle maintenance – costs they must cover themselves as “independent contractors.” In a 2023 HRW survey of 127 gig workers in Texas, the median hourly wage after expenses was just $5.12 – nearly 30 percent below the federal minimum wage of $7.25.

Gig workers are denied protections usually afforded to employees, such as overtime pay, unemployment insurance, and paid leave. They also face the constant threat of “deactivation” by algorithm – being removed from the platform without explanation, due process, or recourse.

Alejandro G., a rideshare driver in Houston, described the emotional toll of such precarious work. “There are nights where I am getting home at 4 or 5 a.m.,” he said. “All you want to do is go home, but if you go home, you won’t make any more money. If you stay out, you just get more tired – it’s a constant cycle.”

Algorithms Over Autonomy

Despite being classified as independent contractors, gig workers have little control over their working conditions. The platforms dictate pricing, job assignments, and performance metrics through algorithms that workers do not understand and cannot negotiate with. For example, Uber drivers often only discover how much they will earn after completing a ride.

Workers’ earnings and access to work are tied to performance indicators like customer ratings and delivery times. These opaque systems mean workers frequently have to overextend themselves to meet metrics or risk losing income – or even their job altogether.

HRW says such algorithmic management, often justified by efficiency, actually strips workers of autonomy. Instead of enjoying flexibility, gig workers are trapped in a system that controls their schedules and limits their earnings unpredictably.

Real-World Risks

Beyond financial instability, platform workers face significant physical and psychological hazards. Over a third of HRW survey respondents had been in at least one work-related car accident, and a quarter reported job-related injuries. Workers also shared experiences of carjackings, assaults, and discrimination.

Julia B., a driver for Amazon Flex, was carjacked mid-delivery. Although she recovered her vehicle, she lost her wallet, phone, and packages. The days she took off to recover were unpaid, and she received no medical or psychological support.

Others reported having to choose between paying rent or maintaining their vehicle. Debra W., a Shipt worker, fractured her arm on the job and was out of work for over two months. Shipt covered part of her expenses but not enough to keep up with bills. “You get to that point of, okay, what do you do?” she said. “Pay for the car so you can work? Or pay for housing and risk losing the car?”

No Path to Collective Action

Another major issue is the lack of union representation. As independent contractors, platform workers in the US are not entitled to organise or collectively bargain under current labour law. Although some have staged ad-hoc protests over wages and working conditions, these efforts remain fragmented and under-resourced.

The Protecting the Right to Organize (PRO) Act, which would extend collective bargaining rights to gig workers, has stalled in Congress. Without structural reform, workers continue to fight alone against multibillion-dollar companies with little leverage.

Corporate Profits vs Worker Poverty

The HRW report contrasts the workers’ struggles with the ballooning profits of platform giants. In 2024, Uber reported $43.9 billion in revenue, with a net income of $9.8 billion – its “strongest quarter ever,” the company said. DoorDash, holding a 67 percent share of the US food delivery market, reported $10.72 billion in revenue, a 24 percent increase over the previous year.

These windfalls are enabled, HRW argues, by a regulatory framework that allows companies to sidestep taxes and employment obligations. The organisation estimates that Texas alone lost out on over $111 million in unemployment insurance contributions between 2020 and 2022 due to misclassification of workers.

Global Relevance, Local Impact

While the HRW report focuses on the US, its implications are global. Gig platforms operate in over 100 countries, and the number of such platforms has exploded from 142 in 2010 to 777 by 2021, according to the International Labour Organization. Most operate in G20 countries, with nearly 40 percent based in the US.

In Sri Lanka, for example, digital labour platforms like Uber and PickMe have become mainstays in daily commuting and food delivery. A study by the Centre for a Smart Future found that 50 percent of gig workers in the country consider it their full-time profession. Sri Lankan gig workers also rank among the top 15 globally by participation on online freelancing platforms.

Calls for Reform

To address these challenges, HRW recommends that US lawmakers strengthen employment classification standards – such as adopting the “ABC test” that presumes a worker is an employee unless proven otherwise. They also call for updated minimum wage laws, robust data protection regulations, and bans on exploitative algorithmic practices.

Legislation such as the US No Robot Bosses Act and the Exploitative Workplace Surveillance and Technologies Task Force Act are steps in the right direction, HRW says. However, more ambitious reforms are necessary to ensure workers have transparency, bargaining power, and a path to decent work.

“The future of work is already here,” HRW concludes. “But for many gig workers, it looks a lot like the past – unregulated, precarious, and exploitative. It is time for governments to catch up.”