Posts tagged classification
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.
Independent contractor classification still murky under new DOL rule
July 8, 2024 // Bill Webb, executive director for the Coalition for Independent Truckers, is skeptical. “To me, it’s just another one of those deaths by 1000 cuts for the independent contractor model,” he said. He believes this year’s November election will be crucial in retaining the current model. “(The DOL rule) does clearly change from a true AB5 model to something a little muddier,
New IC rule will have ‘unintended consequences’
January 23, 2024 // For Jim Burg, owner of Warren, Michigan-based James Burg Trucking Company, being an independent operator helped him build his business, and he views being an owner-operator as a potential stepping stone for others wanting to do the same. Burg started his company in 1984 with one truck as an independent contractor. His company is now a 94-truck operation with a terminal in Michigan City, Indiana. His trucks primarily haul steel for the automotive and manufacturing industries. "I drove over 1.2 million miles during the early years of my company's existence. Being an IC gave me the experience to understand the trucking industry and how to run a business, Burg recalled, "and it allowed me to gain knowledge of both as I set out to establish my own company."
9th Circuit panel will hear Uber/Postmates case on AB5
December 22, 2023 // The decision handed down by a three-judge panel in March was notable primarily for its reasoning that Uber and Postmates had been denied equal protection of the law in the process that led to the California approval of AB5, state legislation that required companies that hire independent contractors to reclassify them as employees. Equal protection of the law was the only claim by Uber and Postmates that the appellate panel backed; it supported the lower court rejection of other arguments. The panel cited the statements of then-Assemblywoman Lorena Gonzalez, now a state labor leader but the key driver in turning AB5 into law, as evidence that the move to more tightly define when a worker can legitimately be considered an independent contractor was an effort targeted at gig drivers like those at Uber.
BOARD DEFIES FEDERAL APPEALS COURT IN DECISION THAT THREATENS FREELANCERS, INDEPENDENT CONTRACTORS ACROSS NATION
June 15, 2023 // “In today’s decision, the Board reinstates a test for determining employment status that was explicitly rejected by the US Court of Appeals for the DC Circuit. The Board’s decision will force workers into work arrangements they do not want – all for the sake of giving unions new potential members. With this decision, the Board has chosen to ignore the concerns raised by the employer and freelance communities, and its actions threaten to destabilize a number of industries and deprive many independent contractors of the flexible work methods and entrepreneurial opportunities they value. “The Board’s actions are all part of the Biden administration’s war against small businesses and entrepreneurs and will invite confusion and litigation. As we explained in our amicus brief, the NLRB should continue to follow the standard set in SuperShuttle DFW and emphasize the significance of entrepreneurial opportunity when considering a worker’s proper classification.”
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.