Posts tagged Independent Contractor Rule
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.
In Win for Franchises, Judge Voids Biden Admin NLRB Joint Employer Rule
March 11, 2024 // The judge’s decision provided a hypothetical example, in which an ice cream shop, IceCo, contracts with a lawn service, MowCo, to tend the lawn of the shop once a week. The mere fact that IceCo has a contract with MowCo that allows IceCo to refuse the use of certain fertilizers would, under the 2023 rule, cause IceCo to be considered a joint employer of the MowCo employee who mows IceCo’s lawn because IceCo has the reserved right to control a component of the employee’s “health or safety.”
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.
30+ Policy Groups Send Coalition Letter to Congress with Concerns on Independent Contractor Rule
March 11, 2024 // As a Congressional Review Act is being considered to rescind the Department of Labor’s (DOL) Independent Contractor rule, 31 policy organizations sent a coalition letter to the U.S. Congress last week raising concerns with how the new rule would have a disastrous impact on entrepreneurs.
Over 30 Leading Policy Groups Send Coalition Letter to Congress Raising Concerns with Department of Labor’s Independent Contractor Rule and Its Crushing Impact on Independent Workers
March 11, 2024 // Vincent Vernuccio, president of Institute for the American Worker, said, “Instead of empowering workers to make their own decisions to earn a living in the best way to support their families, many policymakers in Congress and the White House want to stifle worker freedom and flexibility. The vague and authoritarian DOL rule will hold back growth, destroy jobs, and harm the very workers it purports to help.”
Texas judge vacates joint employer rule
March 9, 2024 // Judge J. Campbell Barker of the U.S. District Court for the Eastern District of Texas vacated the National Labor Relations Board’s joint employer rule late Friday. The rule was set to go into effect Monday. The new rule would be “contrary to law” and “arbitrary and capricious,” Barker ruled. The court had been considering a legal challenge brought in November by the U.S. Chamber of Commerce, along with other business groups.
Trucking Companies Seek to Delay Contractor Rule Effective Date
March 9, 2024 //
Small Businesses File Lawsuit Challenging DOL’s Independent Contractor Rule
March 5, 2024 // NFIB opposed DOL’s 2024 final rule on independent contractors, arguing that the rule further complicates the worker classification process for small businesses. Small business owners supported the 2021 rule, which offered a straightforward test for determining who is and is not an independent contractor. NFIB filed the complaint with the Coalition for Workforce Innovation, Associated Builders and Contractors of Southeast Texas, Associated Builders and Contractors, Inc., Financial Services Institute, Inc., Chamber of the Commerce of the United States, National Retail Federation, and American Trucking Associations.
Commentary: New Research Exposes Flaws in California’s Independent Contractor Law
February 28, 2024 // The theory behind both AB-5 and the DOL’s recently finalized regulation for classifying independent contractors or employees under the Fair Labor Standards Act is the same: by making it harder to maintain independent contractor relationships, independent contractors will be converted into traditional employees. The Mercatus study suggests this theory has failed in California. The question is whether DOL has learned anything from that example.
10 Questions Julie Su Is Afraid to Answer in Front of the American People
February 27, 2024 // Under the rule of Chairman Bernie Sanders, the Senate Health, Education, Labor, and Pensions (HELP) Committee will instead hold a closed-door executive session to rubber-stamp Su’s nomination. It does not appear that Senators will have any opportunity to question the nominee––in fact, she likely won’t even be required to appear in person. Moreover, as the HELP website states, “There is no video broadcast for this event.”