Posts tagged AB5
Report Rips Biden–Harris Labor Secretary Julie Su
September 23, 2024 // One individual used the name “Mr. Poopy Pants” on his official application and “received an approved claim.” Rapper Nuke Bizzle filed “92 fraudulent applications” and posted a video about the ease of ripping off California’s Employment Development Department (EDD) that gets a lot of attention in the “Widespread Fraud” report. “EDD, under leadership of Labor and Workforce Development Agency (LWDA) secretary Julie Su, made the decision early in the pandemic to ‘pay and chase’ after she was informed that keeping integrity checks in place would lead to a backlog in processing claims largely due to EDDs outdated IT,” the report says
Interview: Independent Contractors and Union Reforms, How @VinnieVernuccio Champions Worker Choice
September 12, 2024 // Unions are stuck in this turn of the last century industrial revolution, a one-size-fits-all adversarial business model that most workers today don't want. I do see a place for unions if they embrace a voluntary business model and become like professional service organizations. Unfortunately, they're not there. If you're under a union contract, you're stuck with the wages, the benefits, the vacations, [and] the hours they negotiate for you. It's actually impossible for the employer to unilaterally say, “you're doing a great job, I'm going to give you a raise,” or “I'm going to give you a bonus,” or, “hey, you want more vacation for a little less money?”
End of an era: California Trucking Association dropping appeal against AB5
August 23, 2024 // The high-water mark of CTA’s fight came on New Year’s Eve 2019 when Judge Roger Benitez of the U.S. District Court for the Southern District of California handed down an injunction blocking AB5’s enforcement against trucking in the state. But from that point, the CTA suffered a series of losses. An appellate court in a 2-1 decision overturned the injunction in April 2021. The CTA took the appeal to the Supreme Court, which denied review in June 2022 and kicked the case back to the District Court.
Commentary: California’s Unions Lost Their Long Battle Against Uber and Lyft
August 13, 2024 // The state Supreme Court unanimously ruled that ridesharing drivers can be exempted from California's crackdown on independent contracting.
Opinion: Congress Doesn’t Care About Freelancers — and It May Cost Them at the Polls
August 11, 2024 // Supporters of reclassification do not understand how essential independent contracting is to our livelihoods. This was evident in 2020 in the fight against California’s AB5—a law implementing a restrictive ABC test that reclassified many independent contractors as employees and inspired the DOL’s new rule. One elected state official claimed the independent status being stripped from us was just “taking away our lollipops.” Instead, AB5 hollowed out self-employment, pushed up unemployment, and destroyed many livelihoods in the process. While California is not in play in this election, Virginia is. Independent professionals are aware of what they will lose if similar policies are nationalized.
Trey Price: PA worker classification bill would repeat California’s mistakes
August 10, 2024 // The best evidence to date suggests that government worker reclassification mandates do not help workers, but rather harm them. Taking a failed policy from one state and hoping it will work better in another is not a good use of time or money. Pennsylvania’s HB 2411 will almost certainly produce unintended consequences, such as introducing new barriers for firms to hire workers, just as it did in California.
Commentary: Beware the Vanilla Slugger
August 8, 2024 // Study after study shows that the vast majority of independent contractors wish to remain as we are. Any government policy that limits our freedom to choose self-employment is a weaponization of regulatory language. It’s trying to force us to become something we do not want to be. It’s plain and simple freelance busting. Unionized employees and independent contractors are equals as Americans. We have the right to choose how we earn a living. Everyone should respect us and our rights, because that’s how we roll here in the land of the free. We’re all about liberty and the pursuit of happiness.
Commentary: Kamala Harris Is Bad News for Gig Workers
August 8, 2024 // Though framed as an overdue deliverance for besieged workers, AB 5 was a gift to labor bosses who dreamed of organizing California gig workers, especially ride-share drivers, and who lusted after the potential dues they could rake in. It was also one of the most-detested laws passed in California in memory. There was no grassroots movement behind AB 5, no uprising among freelancers. It was a top-down scheme fueled by union agitation and then, like so many other lousy public policies hatched in California, unleashed across the country. AB 5’s impact was immediate — and ugly. Workers’ opportunities were narrowed. Many lost their incomes. Businesses faced higher labor costs, and entrepreneurs felt the chill of the dead hand of activist policy-making. The promise of the gig economy, expected to expand globally by roughly 123 percent over the next five years, turned bleak in California. With their businesses in the balance, Uber, Lyft, and DoorDash generously funded a ballot initiative, Proposition 22, that would classify “drivers for app-based transportation (rideshare) and delivery companies as ‘independent contractors,’ not ‘employees.’” Voters approved it overwhelmingly. App-based drivers favored Prop. 22 — four out of five said they were “happy” that it passed, 76 percent said it “benefits me personally,” and 75 percent recommended that lawmakers pass “similar laws in other states so drivers across the country can benefit.”
AB5 specifically targets interstate truckers, OOIDA says
August 8, 2024 // “AB5’s blanket prohibition of leased owner-operators constitutes an unreasonable burden on interstate commerce in violation of the dormant Commerce Clause of the U.S. Constitution under the test established by the Supreme Court in Pike v. Bruce Church Inc.,” OOIDA wrote. “Under Pike’s balancing test, AB5’s burden on leased owner-operators is absolute, and the benefits to the state are minimal, if not illusory. There is no cost truckers can incur or administrative hurdle they can overcome to keep their independent contractor small businesses as leased owner-operators.”
COMMENTARY: Californians Can Still Be Their Own Boss in the ‘Gig Economy,’ Also Known as the Free Market
August 6, 2024 // “Furloughed Californians stand on the verge of being wiped out financially because the law prevents them from working part time in a variety of indispensable positions,” read a letter from more than 150 of California’s leading economists and political scientists. “Blocking work that is needed and impoverishing workers laid-off from other jobs are not the intentions of AB-5, but the law is having these unintended consequences and needs to be suspended. Gov. Gavin Newsom declined to suspend the measure, but went on to violate his own rules on masks and impose a rigid lockdown on the people.