Posts tagged business model
Everything You Need to Know About the Department of Labor Independent Contractor Rule
March 12, 2024 // The DOL does not provide an analysis of how many independent contractors will actually become employees. Let’s say a company is contracting with 100 photographers, all of whom are affected by this rule: how many of those photographers will become employees? It’s clearly not all 100 of them. To unpack the potential benefits (and costs) on workers, we need some analysis into how many of those 100 freelance photographers would become employees. Another consideration for the benefits side of the equation is whether most independent contractors are currently working with small businesses or larger ones. This matters because, as I point out in a previous post, many small businesses do not provide healthcare insurance, retirement benefits, or maternity benefits to their employees. This means that the “benefits” differences between an independent contractor and an employee at a small business are smaller than expected.
In Win for Franchises, Judge Voids Biden Admin NLRB Joint Employer Rule
March 11, 2024 // The judge’s decision provided a hypothetical example, in which an ice cream shop, IceCo, contracts with a lawn service, MowCo, to tend the lawn of the shop once a week. The mere fact that IceCo has a contract with MowCo that allows IceCo to refuse the use of certain fertilizers would, under the 2023 rule, cause IceCo to be considered a joint employer of the MowCo employee who mows IceCo’s lawn because IceCo has the reserved right to control a component of the employee’s “health or safety.”