Posts tagged AB5
Commentary: The Big Fear? A Real Rematch
July 6, 2024 // Just a few hours after the court’s ruling dropped late last week, allowing both ballot measures to proceed, the Massachusetts attorney general made an announcement of her own. She agreed to a deal that will let Uber and Lyft drivers in Massachusetts remain independent contractors, with a minimum hourly wage of $32.50 and some benefits. Interestingly, the attorney general’s announcement noted that the deal averts giving the people of Massachusetts a chance to vote on the matter:
California’s AB5 Law Threatens Film and TV Workers Who Use Loan Outs
May 28, 2024 // Loan-out corporations already pay W-2 wages to their owners. The California Employment Development Department's decision to not recognize loan-outs for payroll purposes means studios would have to pay these corporations directly. Due to the logistical challenges this presents, studios are likely to reject using loan-outs altogether. This could severely disrupt the entertainment industry and needs immediate resolution. And the other giant thing is, other states will not have this law. So why would Hollywood workers stay and have businesses in Southern California if they'd be paying more taxes to live in a more expensive place? Especially if work then moves out of state as well.
Opinion: Gambling With a Worker’s Job
May 1, 2024 // But the job losses go beyond anecdotal evidence. In our recent analysis of California’s AB5, which is the first empirical investigation of the law, my co-authors and I find that it is associated with a significant decline in overall employment and self-employment for affected occupations. Self-employment fell by 10.5 percent for non-exempt occupations. Overall employment fell by 4.4 percent in the same professions. Not only that, but AB5 didn’t appear to make up for these job losses by putting more employees on traditional payrolls with better stability, benefits or protections. Our study found no consistent evidence of more workers becoming W-2 employees.
Side Hustles in Focus as Gig Worker Laws Stir Uncertainty
May 1, 2024 // In the debate over the classification of gig workers, Massachusetts finds itself at the center of a legislative whirlwind, echoing a lengthy battle around California’s AB5 Gig-worker law. Proposals to reclassify Uber and Lyft drivers as employees rather than independent contractors have sparked heated discussions about labor rights and the unintended consequences of regulatory measures.
Opinion: PRO Act Just Gives Unions More Power
April 24, 2024 // Big Labor bosses who desire more resources and power (often in order to steal them or direct them to radical political agendas) hope the PRO Act will complete an 80-year campaign to make America more like Europe, with the strikes, economic sclerosis, and socialist planning for which that continent is known. With the PRO Act having powerful allies in the White House and Congress, it’s time for opponents of Big Labor to take note.
Key shipping company shutters operations; bankruptcy uncertain
April 23, 2024 // The U.S. logistics industry has been battling with financial distress this year with companies filing for Chapter 7 bankruptcy to liquidate, Chapter 11 reorganization, downsizing operations or just shutting down operations.
Opinion: Your freelance job is in jeopardy (Radio)
April 18, 2024 // The DOL issued a rule creating a very strict and confusing definition of a 1099 worker which will certainly have a chilling effect on the entrepreneurial environment and the opportunities available to freelancers. A similar bill was passed in California (AB5) and it devastated small businesses and freelancers. Pacific Legal Foundation is now representing Kim and other plaintiffs in a lawsuit against the DOL. I want to thank Congressman Tom Kean Jr. for sponsoring action on behalf of the New Jersey delegation to push back against this intrusive and egregious assault on independent contractors.
California Carrier and Freight Brokerage Ceasing Operations, Blames AB5
April 18, 2024 // “I blame AB5 for the main reasons our company is closing,” Chaul told FreightWaves on Tuesday. He said all hope that his company would survive faded in March after a federal judge in California rejected trucking and trade associations’ legal challenges to stop enforcement of AB5, a controversial state law that severely restricts the use of independent contractors. “California is a hostile place to operate a business,” he said. “This law has created a hostile operating environment and an environment of unfair competition.”
My Congressional Testimony: Flexible Benefits for a Flexible Workforce
April 17, 2024 // My testimony today focuses on legalizing independent contractors’ access to fringe benefits. My three key points are: 1. Independent contractors lives would be enhanced if they had access to benefits. 2. States are experimenting with various portable benefits models so that workers care not forced to choose between structured employment with benefits or flexible work without benefits. 3. Federal policy can provide a safe harbor for state and local experimentation with these portable benefits systems.