Posts tagged ABC test
Commentary: ATR Applauds House Education & Workforce Committee for Defending Independent Contractors
March 22, 2024 // “Independent contractors want to be their own boss. But Biden and the Democrats want to force them to HAVE a boss,” said Grover Norquist, President of Americans for Tax Reform. Americans for Tax Reform applauds the House Education & Workforce Committee majority for passing Congressman Kiley’s resolution to nullify the Biden DOL’s harmful reclassification of independent contractors.
Further appeals to block AB5 from California trucking seen as a long shot
March 19, 2024 // Appeals are possible of the decision Friday in the U.S. District Court for the Southern District of California that emphatically rejected all the arguments by the California Trucking Association (CTA) and the Owner-Operator Independent Drivers Association. But several observers of the legal battle that has gone on for more than four years said that may prove too big a challenge to proceed. “I’m sure that some will advocate for the appeal and exhausting all efforts, but I’m certainly not bullish on the likelihood of success in the 9th Circuit,” an attorney who is not representing any of the parties and requested anonymity said of possible future CTA/OOIDA action. “It is time to ‘move on’ absent the political will to change.”
IWF Signs Independent Contracting Coalition Letter
March 18, 2024 //
Opinion: This Looming Regulatory Change Is Endangering Your Entrepreneurial Livelihood. Here’s What You Can Do About It.
March 7, 2024 // On the independent contractor language, the U.S. Department of Labor acknowledges in its new rule that there may be "conceptual overlap" with the ABC Test's most harmful section to independent contractors. The U.S. Chamber of Commerce says the "DOL's claim that the regulation does not reflect the ABC Test leaves something to be desired." The independent contractor CRA was introduced in the House and Senate in early March with more than 70 co-sponsors and needs more in both chambers to advance. Federal lawsuits have been filed against both federal agencies, trying to stop these policy changes through the courts. But, given the snail's pace with which the wheels of justice can turn, it's important for Congress to act.
Commentary: New Research Exposes Flaws in California’s Independent Contractor Law
February 28, 2024 // The theory behind both AB-5 and the DOL’s recently finalized regulation for classifying independent contractors or employees under the Fair Labor Standards Act is the same: by making it harder to maintain independent contractor relationships, independent contractors will be converted into traditional employees. The Mercatus study suggests this theory has failed in California. The question is whether DOL has learned anything from that example.
How the New Independent Contractor Rule Could Impact the Senior Care Gig Economy
February 27, 2024 // einer notes that the rule’s implementation follows a general movement throughout the country that is making it much harder for employers or businesses to classify workers as independent contractors. “However, since it’s a rule and not a statute, courts don’t necessarily have to follow it,” he says, although federal courts are inclined to follow guidance and rules issued by USDOL. “When the USDOL conducts an audit, they’re going to follow their own rules and guidance,” Weiner says. “Once you’re under an investigation by USDOL, you’re under their control. But because this rule has yet to go into effect, we don’t know necessarily what the overall real-world implications are.”
Op-ed: Watch out — California’s damaging gig workers law is going nationwide
February 20, 2024 // The rule is slated to take effect on March 10. U.S. Sen. Bill Cassidy (R-La.) and Rep. Kevin Kiley (R-Calif.) have both declared they will use the Congressional Review Act to have this rule rescinded. Previous legislation has been tendered in support of small businesses and the self-employed. The “Fight for Freelancers” group of female writers and editors has filed a lawsuit challenging this rule, which serves to appease Big Labor in the same manner as AB5.
A Lawsuit Seeks to Stop the National Destruction of Trucking Through the DOL Indep. Contractor Rule
February 14, 2024 // The U.S. DOL is using bureaucratic means to make an end-run around already failed legislation (see The PRO Act) in order to destroy independent professionals and small businesses across the nation. The Rule embeds the same tenets found in the ABC Test, which supports AB5, and we all know how well that went in California. The state's trucking industry, in particular, continues to fight hard against AB5, and their battle is being watched by the rest of the industry in other states. Now, a Louisiana business has filed a lawsuit to stop the rule, which is scheduled to take effect on March 11.
The Department of Labor Returns to the Totality-of-the-Circumstances Test for Worker Classification
February 6, 2024 // Employers in states with stricter rules must meet whichever standard provides the greatest protection for workers. Regardless of the analysis applied, remember that workers cannot “waive” their status as an employee and voluntarily elect to be an independent contractor. Highly Regulated Industries Take Note The Final Rule purports to address the concerns that compliance with “legal obligations, safety or health standards, or requirements to meet contractual or quality control obligations may indicate control[.]” The DOL sought to address this concern by stating “actions taken by the potential employer for the sole purpose of complying with a specific, applicable Federal, State, Tribal, or local law or regulation are not indicative of control.” However, the DOL makes clear that anything going “beyond compliance” with these laws or regulations potentially indicates control—a distinction likely to be litigated in misclassification disputes. Bottom Line: Franchisors Must be Cautious of the Restrictions and Controls it Places Over Franchisees.
Commentary: Why we just sued the US Department of Labor
February 6, 2024 // As one of us testified before Congress last year, the Biden administration remains relentless. It’s now attempting a regulatory workaround with the Department of Labor’s independent contractor rule, which, in a cruel twist, was released just days before Mercatus Center research showed that the protesting independent contractors have been right all along. Mercatus found that the California approach not only failed to create unionizable jobs, but actually decreased overall employment by 4.4 percent and self-employment by 10 percent. Mercatus also noted that this happened despite California ultimately exempting more than 100 professions. The new Labor rule exempts none. The department acknowledges there may be “conceptual overlap” with the California law’s most harmful language. We agree. What’s worse is that the Labor rule is so vague, it’s impossible for anyone to know how to operate legally with independent contractors. The Biden administration sees this as a feature, not a bug.