Posts tagged Freelancers
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.
OPINION: Biden’s war on working women
February 5, 2024 // But given the administration’s bent toward categorizing workers as employees (in an effort to ramp up unionization), the prospects of retaining their independent status look bleak for the nation’s 70+ million independent workers. Over half of freelancers are women. They earn full-time, part-time, or occasional incomes through various occupations that include—but are not limited to—the gig economy. Think about virtual assistants, marketing professionals, transcriptionists, makeup artists, entertainers, and medical assistants. SEE ALSO Goodbye, wage gap. Hello, partner gap. As true take-home-pay equality looms, psychologists warn it could interfere with women’s evolutionary drive to seek out a partner who provides. Women ultimately may pay the price for finally earning as much as men They depend on flexibility to work around their priorities, such as raising families, caring for aging parents and sick spouses, or managing their own illnesses and disabilities.
Op-Ed: Labor Department stuck in 1930s with rule against independent contractors
January 23, 2024 // With a national rule, however, few of those escape options are possible. Freelancers are unlikely to flee the country, and there is no such thing as a national ballot measure. The department has only just finalized the rule, so revisions are unlikely unless there is a change in control of the executive or legislature this November. Independent contractors face an extremely uncertain future. The reason why the rule is likely to be such a problem is because it is based on a vision of what the workplace should look like from a century ago, when large corporations dominated. Large corporations made sense when it was harder to be nimble as a business. Nobel Prize winner Ronald Coase explained the reason we have corporations at all is because of the presence of what are called transaction costs. If I have a business idea that requires the services of someone else, I face those costs. If the business idea requires someone with advanced mathematical calculation skills I don’t have, I can either contract with someone who has those skills to do the work every time I need it, or I can hire them as an employee instead and have them always available.
Opinion: Biden adds to his ‘Bidenomics’ flop: This new rule throws wrench in popular gig economy.
January 22, 2024 // Biden promised to be the “most pro-union president you’ve ever seen,” so he needs to reward all those campaign donations. And Biden’s doing it regardless of the impact on the economy. Independent contractors cannot be unionized, so the more companies lean on these workers, the less ability unions have to organize. It’s really that simple. The Biden administration is trying to sell its new rule as a way to protect workers and make it easier for them to qualify for benefits such as overtime pay and paid time off.
Op-ed: KAREN ANDERSON: Joe Biden And Gavin Newsom Go To War With Freelancers For Their Big Labor Buddies
January 15, 2024 // or those who file Schedule C on their federal tax returns, deducting expenses is crucial, especially if expensive equipment is required in a particular field such as independent filmmaking. Prior to AB5, film producer Dan Cheatham could write off his office costs, vehicle usage, fuel, software, hardware, equipment, healthcare, and self-advertising. “AB5 is poison for the self-employed in California unless we are willing to just volunteer our services and turn this into art for art’s sake,” he said. Finally, the opportunity to hone one’s craft is inherent in the freedom to freelance. Whether it’s a videographer working with different clients in different settings, a writer growing their skill sets to include photography and web design, or a wedding vendor expanding her offerings, the chance to try on different hats is one of many essential attributes of being self-employed.
A Big Year for Labor, But Not for Reality TV Workers
January 1, 2024 // Non-fiction field and story producers have cheered gains made by the Writers Guild and SAG-AFTRA in their deals with studios, but also have noticed that they’re one of the only departments unprotected by a union even on unionized sets.
Freelancers Added Over $1 Trillion To U.S. Economy In 2023
December 26, 2023 // According to recent data published in Upwork Research Institute’s Freelance Forward 2023 survey, freelancers contributed a staggering $1.27 trillion to the U.S. economy in 2023 — marking a 78% increase since 2014. The survey, which included over 3,000 professionals, reveals the substantial economic contribution and growing importance of freelance work.
Commentary: New Biden ‘Joint Employer’ regulation is a boon for unions
November 13, 2023 // In short, joint employment is a possible means for unions to organize major corporations all at once, rather than the piecemeal process of organizing workers at one location at a time. Incidentally, two of the board’s three Democrat majority members are David Prouty, former general counsel of the service employee union UNITE HERE, and Gwynne Wilcox, a former lawyer for the Service Employees International Union. Chairwoman Lauren McFerran served as a staffer of former Sen. Tom Harkin, a longtime union ally.
Minnesota’s Misguided Crackdown Of Independent Contractors
November 1, 2023 // Much to the chagrin of Minnesota regulators, rideshare drivers overwhelmingly identify as independent contractors and not employees. Uber and Lyft drivers have, instead, advocated for portable benefits as a means to insulate themselves from forced reclassification. Utah recently became the first state to pass this reform, while states like Massachusetts are mulling similar bills and will also have an opportunity to vote on a 2024 ballot measure to maintain their IC status. Minnesota should study California Assembly Bill 5 and similar efforts that displaced workers and left them worse off under the guise of “fighting” misclassification.
Will Biden Labor Nominee Julie Su Suffocate the Gig Economy?
October 13, 2023 // Su, and other progressives like Federal Trade Commissioner Lina Khan, want to force a 20th century model of a heavily regulated and controlled labor market on the 21st century gig economy. They also want to impose 20th century style trade unionism, replete with mandatory union dues that (coincidentally I am sure) can in part be used to support progressive candidates and causes in the gig workforce. This is one reason why a bipartisan majority of the Senate is right to oppose Su’s nomination, and why President Biden was wrong to nominate her as Labor Secretary, and certainly wrong to defy the will of the Senate by keeping her as acting Secretary for an indefinite period of time. Biden should pick a new nominee. While no one nominated by Biden will support a free-market labor policy, the nominee should at least understand that massive federal regulations on the labor markets and compulsory unionism are relics that do not fit the economy of the future.