Posts tagged health insurance
Everything You Need to Know About the Department of Labor Independent Contractor Rule
March 12, 2024 // The DOL does not provide an analysis of how many independent contractors will actually become employees. Let’s say a company is contracting with 100 photographers, all of whom are affected by this rule: how many of those photographers will become employees? It’s clearly not all 100 of them. To unpack the potential benefits (and costs) on workers, we need some analysis into how many of those 100 freelance photographers would become employees. Another consideration for the benefits side of the equation is whether most independent contractors are currently working with small businesses or larger ones. This matters because, as I point out in a previous post, many small businesses do not provide healthcare insurance, retirement benefits, or maternity benefits to their employees. This means that the “benefits” differences between an independent contractor and an employee at a small business are smaller than expected.
Opinion: Biden rule threatens to throw independent contracting into disarray
March 6, 2024 // For example, the U.S. Postal Service uses 7,900 contracted delivery services to reach about 3 million of its delivery points. The plainclothes carrier who delivers mail via her personal vehicle to my home in Shenandoah, Va., is presumably one of these contract drivers. Under the Biden administration’s new rule, she and potentially thousands of individuals like her would almost certainly be considered employees. That is because the work these contractors perform is “integral” to the Postal Service; the Postal Service exercises a high degree of direct and indirect control over these individuals by mandating where and when the work must be done, and the delivery contractors are not exercising significant “skill” or “initiative.”
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.
St. Paul educators to take strike vote after months without contract
February 8, 2024 // SPFE wants mental health teams better staffed in all district buildings, more money for recruitment and retention, less expensive health insurance, fewer caseloads and more resources for staff working with students who have special needs. Mental health resource issues were also at the forefront of the union's last strike in 2020, as well as in 2022, when members last took a strike vote. A strike was averted that year after both sides reached agreements on mental health support increases, as well as class size caps, guaranteed recess and wage increases for educational assistants.
Report: Illinois has 5th highest amount of post-employment benefit liabilities
February 7, 2024 // Nationwide, current unfunded state OPEB liabilities are more than $1.14 trillion, or roughly $3,500 for every American man, woman and child. Only four states have a higher amount than Illinois, including Texas, New York, California and New Jersey. Two states, Nebraska and South Dakota, have zero liabilities after implementing defined contribution health care benefits. “OPEB liabilities in many cases are much different than pension liabilities because they are not protected by state constitutions or by contract law,” said Williams. OPEB plans have worse overall funding ratios than state pension plans. With an average funding ratio of merely 13.46%, many have no pre-funded assets whatsoever, allowing liabilities to grow rapidly year over year.
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.
Pasadena hotel workers strike ahead of Rose Parade and bowl game
January 2, 2024 // Workers across Los Angeles hotels have been engaged in ongoing labor disputes with employers since July, in what the Unite Here Local 11 union calls the largest hotel worker strike in modern history. The workers' primary goals include wage increases to keep pace with the soaring cost of housing in Los Angeles, quality and affordable health insurance and humane workloads, according to Unite Here Local 11, which staged walkouts at hotels across Southern California and Arizona over the summer.
Iowa Planned Parenthood workers to picket in Des Moines, claiming unfair labor practices
December 1, 2023 // Unionized Planned Parenthood North Central States from Iowa, Minnesota and Nebraska will picket outside of clinics Tuesday morning to call for a contract that meets workers' demands, including increased wages and lower health insurance premiums. In addition, union officials say they are drawing attention to intimidation and unfair labor practices faced by the bargaining team from the nonprofit health care provider. A demonstration will take place in Des Moines Tuesday outside of the Susan Knapp Health Center from 7:30 a.m. to 8:30 a.m., before patients arrive for appointments. The demonstration is not a strike and will not affect patient care Tuesday, organizers said.
Thousands of Las Vegas Strip hotel workers at 18 casinos could go on strike
November 7, 2023 // In Las Vegas, the 18 properties that could be impacted by a strike are Aria, Bellagio, Excalibur, Luxor, Mandalay Bay, MGM Grand, New York-New York, Park MGM, Caesars Palace, Flamingo, Harrah’s, Horseshoe, Paris Las Vegas, Planet Hollywood, The Cromwell, The Linq, and Wynn and Encore Resorts. The union’s deadline comes after yet another unsuccessful round of negotiations with the three casino companies. A spokesperson for Wynn Resorts declined to comment. Caesars and MGM Resorts did not respond to emailed requests for comment.
How UAW’s Unrealistic Contract Demands Would Backfire on Union
September 13, 2023 // In the current talks, Fain demanded a 46% increase in base pay for hourly workers. With base wages currently ranging from a reported $17 per hour for temporary workers to $32.32 for top-scale assembly workers, the 46% jump would put the range between $24.82 and $47.18 per hour, or $51,600 to $98,100 a year in annual pay. But that’s just the start. The union is demanding a 32-hour work week, for which workers would receive 40 hours of pay. That’s like paying for five days’ worth of groceries, but receiving only four days of food. The UAW’s “pay more for less” demands would bring the true hourly range for workers to between $31.02 and $58.98 per hour. The median hourly wage for all manufacturing workers across the U.S. is $26.59 per hour. At nearly $59 per hour, UAW workers could earn 50% more per hour than registered nurses and 59% more per year than elementary teachers.