Posts tagged ABC test
OPINION: Sen. Sinema Shouldn’t Let Julie Su Turn Ariz. Into Calif.
June 5, 2023 // More than one million freelance workers lost work in the wake of AB5’s passage. In response to public outrage, the California legislature carved out scores of politically connected professions from the draconian legislation so that it no longer applied to musicians, translators, writers, photographers, and many others. But big labor’s main targets – independent truckers and the gig economy – are still suffering from AB5’s harsh policy. Even the notoriously left-leaning Ninth Circuit Court of Appeals has suggested that AB5’s sponsors and enforcers may have had no legitimate policy objectives in mind when granting exemptions to AB5, and instead acted out of "animus" by targeting companies that facilitate vast swaths of independent contracting.
Reclassifiying Rhode Island’s independent workforce could cost the state millions
May 25, 2023 // Actual instances of misclassification are already addressed by existing laws. And if workers desire to obtain benefits, health care, or otherwise, they need not be traditional employees to do so. To prevent forced misclassification in Rhode Island, lawmakers should propose reforms like portable benefits to allow workers to maintain their independence yet apply for benefits as needed. Utah just pioneered this reform to allow worker benefits to follow workers, not employers. With a portable benefits system in place, forced reclassification efforts like SB 430 can be defeated. As of December 2022, 27 percent — or 85,116 self-employed gig workers — of Rhode Island’s small business workforce engages in independent contract work. That should be celebrated, not undone by misguided policymaking that seeks to correct a non-problem.
Op-ed: GROVER NORQUIST: Biden’s Radical Labor Nominee Wants To Raise Your Taxes
May 22, 2023 // As California Labor Secretary, Su was tasked with overseeing the distribution of tens of billions of dollars in unemployment insurance payments during the COVID-19 pandemic. In the process, Su stripped the program of commonsense safeguards and wasted up to a staggering $31 billion on fraudulent payments. That’s about $1300 per income tax filer in the state. To further contextualize the unprecedented scale of this failure, the entire FY2024 budget request for the U.S. Department of Labor was $15.1 billion. Julie Su squandered more than twice this amount of taxpayer money on fraud in a single program in a single state. Americans should rightfully worry about the impact on their own pocketbooks if Su is given an undeserved promotion to oversee operations in all fifty states.
Senate panel advances Biden Labor nominee Julie Su
April 26, 2023 // “Today’s party-line vote is another reminder that Julie Su is no Marty Walsh, who advanced in a bipartisan 18-4 vote only two years ago,” said Michael Layman, a top lobbyist at the International Franchise Association, in a statement following Wednesday’s vote. The AFL-CIO is fighting back, running ads in Arizona and D.C. backing Su’s efforts to counter wage theft in California. The ads tell viewers that workers are “tired of getting ripped off by big corporations.” The labor federation is also mobilizing its members to lobby senators. “We’re going to defend Julie against these baseless corporate special interests attacks,” AFL-CIO President Liz Shuler told reporters last week. “Every senator, especially those that haven’t yet said that they’ll vote yes, needs to be aware of how much this confirmation means to working people’s lives.”
Gig Worker Qualifies as an Employee, California District Court Concludes
April 25, 2023 // The U.S. District Court for the Northern District of California ruled on March 30 that the driver should be classified as an employee who is entitled to overtime pay and minimum wage protections under state law. The court ruling is "more of a warning shot to show the consequences of failing to comply" with state rules on employee classification, said Bryan Hawkins, an attorney with Stoel Rives in Sacramento. Theane Evangelis, an attorney with Gibson Dunn in Los Angeles who represented Grubhub, said, "We disagree with the court's ruling and are considering our legal options. Thanks to Proposition 22—which California voters overwhelmingly enacted and the California Court of Appeal recently upheld—drivers who use the Grubhub app will continue to enjoy the freedom and flexibility of working as independent contractors."
What is the Employee Rights Act, and how would it advance worker freedom?
April 21, 2023 // Unlike the PRO Act – which, imbued with a dated and rigid workplace vision that is increasingly displacing American workers – the ERA would empower workers to seize more opportunity and take greater control of their futures.
How Utah Is Protecting Workers Without the Baggage of Unions | Opinion
March 28, 2023 // Utah's Portable Benefit Plan is a national breakthrough for independent contractors, establishing a legal pathway for entities to offer fully voluntary benefits plans that self-employed workers can open on their own. Unlike employer-sponsored health plans for traditional employees that are tied to jobs, Utah's self-employed workers instead will soon have access to a variety of new benefits plans that are entirely their own and entirely portable for their evolving careers. The possibilities of products that may be established are broad, including the potential for health insurance, unemployment insurance, and disability insurance related products. There is even a pre-existing financial tool known as a "Utah medical care savings account" that self-employed Utahns may conveniently use to pay for their portable health insurance benefits and medical expenses. Many opponents of independent contracting argue that such workers are exploited and deserve the health care and other benefits that many traditional employees receive.
ATA Expresses Concern Over Labor Secretary Nominee Julie Su
March 17, 2023 // In a letter to U.S. Senate labor leaders, American Trucking Associations President Chris Spear expressed concern about the track record that Labor Secretary nominee Julie Su would bring to the job, specifically as it relates to the rights of truck drivers to be independent contractors. “California’s AB 5, which Ms. Su helped pass and implement as Secretary of the California Labor and Workforce Development Agency, essentially outlaws their business model,” Spear wrote in a letter to Sen. Bernie Sanders, (I-Vt.), chairman of the Senate Committee on Health, Education, Labor and Pensions, and ranking member Bill Cassidy (R-La.). The letter was copied to members of the committee.
California Court Rebukes War on Workers
March 16, 2023 // This obviously poses an existential threat to emerging app-based companies that rely on a contractor model, but it also posed an entirely predictable threat to many traditional professions where workers eschew the 9–5 cubicle or factory floor work model. When the Legislature codified Dynamex via Assembly Bill 5, which went into effect in January 2020, it exempted many industries — primarily those with the most influential lobbies. Nevertheless, economic destruction ensued. Companies eliminated jobs rather than hire people as salaried employees. Publications — including Vox, which ran a piece championing AB 5 — laid off its California stringers. Musical groups that relied on gig workers had to shutter their operations. All types of freelance workers — from photographers to sign-language interpreters to rabbis — suddenly found themselves in a pickle. The same Gov. Gavin Newsom who used his vast executive powers to suspend laws during the COVID pandemic refused to suspend AB 5, even as people who were forced to stay at home lost their stay-at-home freelance opportunities. Some Californians embraced the workaround of starting an LLC, but that imposed new costs on workers who already were struggling. Dynamex Operations West v. Superior Court of Los Angeles
Opinion: Let’s Continue to Fight for Freelancers
February 24, 2023 // New Senate HELP Committee Chairman and avowed socialist Bernie Sanders (I-VT) is eager to reintroduce the PRO Act in the chamber soon. The bill’s most recent version contained the following provisions: an ABC test that deems most workers employees and not independent contractors; a statute to abolish right-to-work; making union membership conditional for employment; and giving unions unfettered access to private worker information.