Posts tagged gig economy
Bill McNeely, Ride Share Driver, Arizona
April 5, 2024 // Bill McNeely, Ride Share Driver, Arizona Bill McNeely is 47 years old, and in his third career. He’s served in three branches of the military and led logistics projects for defense contractors. His teams built operating bases for the Department of Justice to investigate Saddam Hussein,…
Opinion: New Labor rule will harm freelance work under the guise of helping workers
March 22, 2024 // In crafting solutions, it is crucial to maintain a focus on protecting vulnerable workers while also supporting innovation and maintaining the flexibility that has become a hallmark of the American economy. Collaborative efforts between businesses, labor organizations, and policymakers can pave the way for regulations that uphold fair labor standards without shutting down economic growth and individual autonomy.
Commentary: ATR Applauds House Education & Workforce Committee for Defending Independent Contractors
March 22, 2024 // “Independent contractors want to be their own boss. But Biden and the Democrats want to force them to HAVE a boss,” said Grover Norquist, President of Americans for Tax Reform. Americans for Tax Reform applauds the House Education & Workforce Committee majority for passing Congressman Kiley’s resolution to nullify the Biden DOL’s harmful reclassification of independent contractors.
OPINION These new government contracting rules will put parents, caregivers, seniors out of work
March 12, 2024 // Many independent contractors we have engaged quit full-time positions to become caregivers. They sought opportunities like what we offer to stay engaged in their fields, have an intellectual outlet, and enjoy camaraderie with colleagues, while contributing to the family finances. They don’t want the pressure of short-term deadlines and in-person meetings; they don’t want to have to track time and explain about sick kids or field trips. Can we continue to offer these work relationships? Maybe, although the guidance that contractors cannot "perform similar work of employees" makes it fraught.
Beware the labor regs of March!
March 11, 2024 // A new rule from the federal government meant to protect workers is set to take effect today, March 11. It will instead leave most workers worse off by limiting their options for employment. Businesses will likely pull back from hiring entirely in many cases because the rules make it too risky. The rulemaking in question is the Labor Department’s (DOL) worker misclassification rule. The stated intent is to prevent situations where employers exploit workers. The rule is extremely vague on when business activities trip the line to exploitation however. DOL essentially leaves it up to federal regulators to decide. The rules won’t change things overnight. Regulators will still have to pursue cases based on them and court fights are sure to follow. But today is the day the mischief will officially start.
Biden’s new rule on independent contractors wages war on workers, women and entrepreneurs
February 26, 2024 // In the past year alone, 64 million Americans freelanced, half of whom were women. Women choose independent contractor status because of the flexibility it affords them, a particularly important factor for those raising children or aiding in caring for parents or other family members. Ninety-two percent of female workers prioritize flexibility over stability when it comes to their careers. Flexibility in the workplace is no longer a commodity, it is a necessity.
Opinion: The Biden Administration Should Look to Virginia Democrats For a Better Way to Help Gig Workers
February 25, 2024 // The concept of coupling the protection of contracting status with a flexible benefits system is an idea that also should appeal to right-leaning policymakers. That’s because such an approach not only helps businesses, but stands to benefit workers by preserving the entrepreneurial flexibility they desire as independent contractors. In addition to this flexibility, it likewise provides workplace protections and benefits that can help these workers weather the exigencies of life—all without the harmful negative impacts of widespread worker reclassification. According to our sources, local Virginia labor unions initially expressed interest in this Democrat-introduced portable benefits model, only to catch flak from their national parent organizations who pressured them to reverse course. Unfortunately, the influence of the national labor brass appears to have doomed the bill for now, although its mere existence suggests that Democratic lawmakers are starting to buck the party’s consensus on worker reclassification.
Biden Takes a Destructive California Idea National
February 4, 2024 // The Biden administration appears undeterred by the lessons of recent history. The California law unleashed chaos in the state’s politics and courts. Politicians delegated to union leaders the power to hand out exemptions to politically favored groups. Lawyers, doctors, psychologists, dentists, podiatrists — almost anybody with an advanced degree was exempt. When newspapers editorialized against the new law — noting that they rely on freelance photographers, reporters, editors, designers, and delivery people — they, too, were excluded from the new regulations. Suddenly free from the dead hand of state regulators, the newspapers turned as one and editorialized in favor of the new law. A federal judge said the process was shot through with “corruption,” “backroom dealing,” “pure spite,” and “naked favoritism.” But more important, A.B. 5 crushed tens of thousands of California business owners — those who operate as independent contractors as well as those who employ or otherwise rely on them. Now Biden and Su plan to bring the crazy to every American state.
Pro-Worker, Not Pro-Union
January 31, 2024 // What the Right has often overlooked in this debate is that the protection of independent-worker status can be coupled with a revamping of worker-benefit options. Lack of benefits is frequently cited as the main drawback of independent work. Republicans could burnish their pro-worker credentials, while protecting businesses from reclassification and other draconian left-wing policies, by proposing a flexible benefit setup for contractors and gig workers that has features similar to a SEP-IRA. It would use a system of employer contributions while giving workers the ability to make pre-tax contributions of their own. The funds could be used for benefits such as paid sick leave, unemployment insurance, or even health insurance, some of which could be purchased through newly created worker-benefit exchanges that act as brokerages for the benefits. Benefit-flexibility concepts can be applied as well to retirement savings, even those of noncontract workers. The current system largely relies on employer-based retirement plans, but many workers find it difficult to roll old retirement accounts over to new jobs. That has led to a proliferation of abandoned “orphan” accounts. Automatic portability for retirement accounts would make it possible for more workers to take their accounts with them to new jobs. Also due is a nuanced rethinking of noncompete agreements in labor contracts. While libertarian notions of the freedom of contract have long led right-leaning policy-makers to resist the imposition of restrictions on contractual arrangements, recent years have seen more free-market proponents question the efficacy of noncompetes with respect to their impact on worker freedom and earnings.
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.