Posts tagged gig economy
Opinion: American workers face war on right to earn a living
May 16, 2023 // The war on independent work harms the most vulnerable in society. We’ve seen it play out in California, with countless stories of livelihoods destroyed. It is no surprise, then, that hundreds of economists, as well as the California NAACP, Black Chamber of Commerce, and Hispanic Chamber of Commerce opposed efforts to limit independent work. With an estimated 50 percent of the nation’s Latino community and 40 percent of the black community engaged in independent work, a national effort to limit these arrangements could put at risk the livelihoods and net income of 20 million workers from these communities.
Su Squeaks Past Committee on Party Line Vote
April 27, 2023 // According to the California State Auditor, “(D)espite repeated warnings, EDD (under Su) did not bolster its fraud detection efforts until months into the pandemic…(including allowing) claimants to collect benefits even though they were using suspicious addresses—in one case, more than 1,700 claims were coming from a single address.” As to the rate of fraud, California actually realized a rate of about 22% and, while having only about 12% of the nation’s workers, processed 21% of all unemployment claims which, one would assume, should have been seen as a red flag to the EDD.
Senate panel advances Biden Labor nominee Julie Su
April 26, 2023 // “Today’s party-line vote is another reminder that Julie Su is no Marty Walsh, who advanced in a bipartisan 18-4 vote only two years ago,” said Michael Layman, a top lobbyist at the International Franchise Association, in a statement following Wednesday’s vote. The AFL-CIO is fighting back, running ads in Arizona and D.C. backing Su’s efforts to counter wage theft in California. The ads tell viewers that workers are “tired of getting ripped off by big corporations.” The labor federation is also mobilizing its members to lobby senators. “We’re going to defend Julie against these baseless corporate special interests attacks,” AFL-CIO President Liz Shuler told reporters last week. “Every senator, especially those that haven’t yet said that they’ll vote yes, needs to be aware of how much this confirmation means to working people’s lives.”
What NLRB’s New Collaboration with Consumer Financial Agency Means for Gig Economy Businesses
March 10, 2023 // If your business relies on gig economy workers, you may want to review your policies on monitoring workers and requiring them to pay for training and equipment. That’s because the National Labor Relations Board (NLRB) announced on Tuesday that it’s joining forces with the Consumer Financial Protection Bureau (CFPB) to address potential misconduct regarding workplace surveillance, monitoring, data collection, and employer-driven debt. The agencies said they will share information to enhance their enforcement efforts and better protect workers in the gig economy and other labor markets from harmful financial practices. What do you need to know about the new Memorandum of Understanding and its impact on the workplace?
Opinion: Imagine there’s no public employee unions
February 21, 2023 // But try as President Joe Biden has, it just hasn’t been enough. Automation (including not only factory machinery but also the gig economy), trade, high-profile union corruption cases, failing pension funds, and a string of adverse court rulings are among the many factors rendering private sector unions irrelevant to workers in most modern fields. This has led the unions to desperate measures, such as organizing esoteric, low-income professions, including graduate student teachers and video game testers. Yet the story is quite different for unions in the public sector. The unionization rate of public employees remains robust, at more than 33% of all government workers nationwide. Local government workers are the most likely to be unionized, at a rate of nearly 39%, and public sector union members are concentrated in states that mandate collective bargaining. The states with higher rates of unionization seem to correlate with the nation's least functional state governments: California (54.5%), Illinois (48.7%), New York (66.7%), and New Jersey (59.3%) among them. As their private sector cousins starve, public employee unions are fat and happy — a strange development, given that there was no public sector collective bargaining at all 70 years ago, when unions were at their apex.
A third of Americans contribute to the $1.3T freelance economy. Now what?
January 24, 2023 // Nearly 40% of Americans performed freelance work in 2022. That’s up nearly 10% from 2021, and a third of them make freelance their full-time work.
Opinion: Solving Gig Worker Problem will Open Up the Future of Work
December 21, 2022 // The costs and legal liability associated with classifying gig workers as employees would cripple the gig economy and cancel out all the productivity gains experienced over the last decade since the “gig economy” was first coined. This problem has puzzled policy wonks, judges, and legislators alike. The issue comes down to a simple, but loaded question: are gig workers employees or independent contractors? If gig workers were employees, platforms would be subject to legal and financial liability that would necessitate reducing worker flexibility. It would also be limited in the number of platforms they could work for at any given time. If gig workers were considered independent contractors, it removes this liability and maintains flexibility.
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.
Is the Uber, Lyft and gig economy battle over workers nearing its end game?
October 17, 2022 // Proposed Department of Labor rules stop short of classifying Uber and Lyft drivers as employees. But the Biden administration’s pro-worker bias has analysts wondering what may come next in the battle over the gig economy and union momentum in the U.S. workforce. In a worst-case scenario, costs could rise as much as 30 percent for on-demand transportation companies just getting to break even, analyst says, and that means fares may rise as well.