Posts tagged independent contracting
Independent Work Offers Hope for Financial Security for Women 50+
March 5, 2024 // “I have friends who are struggling in retirement because they lost good jobs at age 50 and could never find another career position despite years of job searching.” A 2017 field study bears this out. Conducted by the Federal Reserve Bank of San Francisco, the study revealed a 47% lower callback rate for older female applicants than young female applicants aged 29 to 31 years. For sales jobs, the callback rate was 36% lower for older female applicants. Because independent contracting is vital to keeping pre-retirement women attached to the workforce, it defies logic that legislators insist on stifling the very independent career opportunities that help these women supplement their income, stay active, and maintain a sense of purpose.
‘All-of-government’ approach undermines workers’ free choice
February 15, 2024 // As punishment for the “offense” of simply not being organized by a union, these employers face particular hostility from the supposed arbiter of private-sector labor relations, the National Labor Relations Board. Now packed with pro-union Biden appointees, the Board continues to issue decisions that appear singularly focused on increasing union power without regard to their impact on workers or businesses.
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.
Commentary: Biden’s Independent-Contracting Rule Destroys Worker Independence
January 16, 2024 // A recent regulatory change by the Biden administration is so poorly designed, there’s no telling exactly how many workers will be hurt.
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.
Michigan Legislature Is Mulling An ABC Test
October 13, 2023 // The local Chamber of Commerce warns there will be no exemptions for Michigan’s independent workers (unlike California’s AB5 which exempted over 100 occupations). The Great Lake State currently employs the Internal Revenue Service (IRS) 20-factor test, which is more amenable and receptive to flexible work arrangements. HB 4391, on the other hand, would create an independent contractor disclosure notice to “self-report alleged misclassification issues” to accompany HB 4390. This timing isn’t coincidental. Michigan repealed its right-to-work law earlier this year. As I noted at IWF back in April, here’s the immediate fallout from repealing right-to-work:
Three New Regulations That Will Make It Harder to Serve the Needy
October 12, 2023 // In our Opportunity Playbook, we highlighted the Institute for the American Worker as an organization fighting for pro-labor policies that respect individual workers’ choices and freedom in the workforce. They join many others who are educating policymakers and regulators on how to ensure policies do not limit charitable organizations from serving communities.
Trucking Trade Association Meets with Congress to Discuss Independent Contractor Model
March 20, 2023 // "One out of every seven trucks you see on the road in the United States today is operated by an independent contractor," said TIE Executive Director, Scott Brenner. "Our association is committed to ensuring that the independent contractor model remains a viable option for businesses and workers alike, providing opportunities for entrepreneurship and job flexibility."
The PRO Act helps forced unionization while the ERA helps workers
March 9, 2023 //
Upwork Report: Freelancers Make Up 39% Of U.S. Workforce
January 6, 2023 // Upwork, a freelance marketplace, recently released its annual Freelance Forward survey. Their survey is considered “the most comprehensive study of the U.S. independent workforce.” Their 2022 report, released last month, says more American workers are seeking independent contract work “to find greater professional fulfillment, flexibility and financial stability, and a new approach to managing their career trajectory.”