Posts tagged ABC test
California: The Lost Report
April 1, 2025 // On December 3, 2020, almost a year after California’s freelance-busting law, Assembly Bill 5, went into effect, the California Advisory Committee to the U.S. Commission on Civil Rights was created to study AB5’s civil rights implications. The committee’s officially designated term ended December 4, 2024. There were hours and hours of testimony, much of it recorded on video. But the committee never issued a report based on all this testimony its members heard. Members of the committee say they were told that if they issued individual statements in the absence of any committee report, they would be failing to comply with the Federal Advisory Committee Act and the rules of the U.S. Commission on Civil Rights.
Opinion: Congress Must Oppose Big Labor’s “PRO Act” Power Grab
March 14, 2025 // In the 2024 election cycle, labor unions gave nearly 90 percent of their political donations to Democratic Party candidates. For large unions like the National Education Association (NEA), as much as 99 percent of political donations went to Democrats. The PRO Act is a return on investment for the hundreds of millions of dollars that union bosses continue to pour into Democrat coffers.
‘We Are Hopeful’ Q&A with Patrice Onwuka and Kim Kavin
January 24, 2025 // Congress should consider enshrining the Trump-era definition for independent contractors, and/or consider ways to get ahead of the opposition to flexible work. The Employee Rights Act was a federal bill that, among many pro-worker provisions, sought to protect independent contractors as a counter to a national ABC Test in the now-defunct Protecting the Right to Organize Act. Portable benefits also provide a pathway for companies to provide independent contractors with workplace benefits without triggering a reclassification.
New Study: From Gig to Gone? ABC Tests and the Case of the Missing Workers
January 10, 2025 // The introduction of an ABC test caused significant declines in traditional (W-2) employment, self-employment, and overall employment. The ABC test reduced traditional (W-2) employment by 4.73% Self-employment fell by 6.43% Overall employment fell by 4.79% Occupations with high shares of independent contractors experienced the largest reductions in employment. These results suggest that contrary to the intended goal, ABC tests are not altering the composition of workers and leading to more workers becoming traditional W-2 employees, but they are reducing employment for both W-2 employees and self-employed workers.
Independent Contracting in 2025
January 8, 2025 // Independent contractors forgo workplace benefits that employees receive. Portable benefits are a way to give them access to benefits untethered from employment with one employer.
COMMENTARY: These Punches Landed
October 24, 2024 // What you have is a task force that’s heavy on unionists. I understand why you want to help unions: Membership is at an all-time low, and Gallup says 80% of people either don’t want to join a union, or are at best neutral on the subject. But when you try to solve that union problem by destroying the livelihoods of independent contractors, all you do is come off as extremists.
The Highest Stakes Commentary: Kim Kavin
October 16, 2024 // In this version of the ABC Test, Part B states that a person can only be a legally operating independent contractor if: The person performs work that is outside the usual course of the hiring entity’s business. That line has been an unmitigated income- and career-destroyer for Californians in more than 600 professions. It hit everyone from comedians who could no longer perform at comedy clubs to translators who could no longer provide translation services for translation companies to freelance writers who could no longer write articles for publishers. Owner-operator truckers are still battling in the courts and trying to explain how it could decimate the supply chain, with the threat of taking so many self-employed truckers off the road. The damage to people’s livelihoods was so significant that within a year—just one year—of AB5 going into effect:
DOL Making it Harder to Hire Independent Contractors
October 1, 2024 // The DOL’s test is just one of many. The IRS uses a “right-to-control” test, which is generally more business-friendly, focusing on whether the hiring firm controls how the work is done. In contrast, many states apply the strict ABC test, where a worker must: ⦁ be free from the company’s control, ⦁ work outside the usual course of the hiring firm’s business, and ⦁ be engaged in an independent business or trade.
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.