Posts tagged Fair Labor Standards Act
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."
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.
FREEDOM FOUNDATION CALLS OUT FEDERAL SCHEMES TO EXPOSE MORE WORKERS TO UNION PRESSURE
January 31, 2023 // The wage and hour requirements of the Fair Labor Standards Act, the excessively complicated regulations of the Wage and Hour Division and the collective bargaining requirements of the National Labor Relations Act all give employers incentives to use independent contractors rather than employees when possible. Oblivious to the role they play in encouraging the use of independent contractors, Biden’s operatives insist the “misclassification” of employees as independent contractors constitutes a national emergency. In fact, a far greater threat is posed by the new regulations to the livelihoods of independent contractors in the gig economy just to appease Biden’s benefactors in Big Labor.
What Home-Based Care Agencies Should Know About The Independent Contractor Proposed Rul
November 29, 2022 // “In other words, just the ability to manage somebody that is not exercised in any way can be considered employment. I think that takes it a step too far. The question should really be about what is actually occurring, not what is possible.”
Taking the ‘Free’ Out of ‘Freelance’
November 3, 2022 // ...the Biden administration’s recent broadside against independent work, in the form of a new Department of Labor proposed rule for determining when a worker is properly classified as a contractor or an “employee” under the Fair Labor Standards Act (and thus subject to minimum wage, overtime, and other labor regulations). The rule is complicated and still preliminary, but most experts agree on its objective and likely result: to make it more difficult for workers to be classified as independent and thus to force many of them to be reclassified as employees, whether they like it or not.
Biden’s regulatory machine wants to stifle the freedom of the American worker
October 31, 2022 // Frankly, workers are not helpless. They are perfectly capable of choosing their own lifestyles and can evaluate their labor choices along with the compensation and benefits each provides. We currently have an economy in which, for the entirety of 2022, the number of job openings has nearly outnumbered unemployed workers 2-1. If these “gigs” were so horrible, these people would seek other employment. Moreover, the Biden administration’s mandated reclassification would significantly increase the cost of doing business for both small businesses and large companies such as Uber, Doordash, and others that provide unique economic opportunities for gig workers. This heavy-handed regulatory approach will discourage entrepreneurial innovation and result in added costs that will be passed along to the consumer.
A fearful October for entrepreneurs
October 29, 2022 // The National Labor Relations Board (NLRB) is coming after the almost 800,000 franchise owners who employ 8.5 million people. The board’s proposed “Joint Employer” rule, would have catastrophic effects on the franchise industry and restrict the opportunities of small business owners who are franchisees. The NLRB rule would force franchisors — distant corporate headquarters — to come between franchisees and their employees. It would do so by making both the headquarters and the small business employers of workers at the franchisees’ store. Franchisors would become jointly liable for employment issues involving workers or contractors who are employed or “directly controlled” (as the current standard notes) by a small business.
Department Of Labor Independent Contractor Rule Will Hurt Women In The Workforce
October 20, 2022 // “The Biden Department of Labor has placed flexible, independent work that women value and depend upon in their crosshairs. They want to make it more difficult for the nation’s 60 million freelancers to engage in their preferred work arrangements. In response to the COVID pandemic, women now comprise over half of new freelancers. The number one reason women engage in independent contracting is the flexibility to set their own schedules and work around important priorities. Many are only working part-time or less and don’t want employee benefits. They’d rather have more money and be their own boss. With 40-year high inflation, American households need more opportunities, not fewer. “The 2021 rule pertaining to independent contractors was not only simpler to apply but protected independent contract work across the country. Whether clocking a few hours a week or creating bustling businesses that go beyond a 40-hour week, women are carving out fulfilling and financially secure opportunities as independent contractors. Older Americans can also break free from the constraints of fixed budgets and stay attached to the workforce by freelancing.
Independent Contracting – Proposed Department of Labor Rule
October 19, 2022 // The Biden Department of Labor (DOL) proposed a new independent contractor rule on October 11, 2022 to address what Secretary Walsh deems “misclassification” of workers. This would replace a current DOL rule from the Trump administration that went into effect in March 2021 – a rule which the Biden administration improperly attempted to rescind that provided clarity to the “economic realities” test used to determine the employment status of workers under the Fair Labor Standards Act (FLSA).