Posts tagged Independent Contractor
Leah Salyards, Freelance Writer, Pennsylvania
April 5, 2024 // Leah Salyards, Freelance Writer, Pennsylvania Leah Salyards doesn’t want to be defined by only one role. “I’m a lot of things—I’m a wife, a mother, a gardener, a pet owner, a worker. I can order my roles—and my loves—in the order that I’m called to, for…
Kaleigh Cunningham, Photographer, Montana
April 5, 2024 // Kaleigh started Adventure Forever Photography because it’s a piece of her own American Dream. “When I’m out doing a photoshoot, or sitting at my desk editing, I’m happy the entire time. There’s no part of me that wishes I was doing something else,” she says.
PODCAST: An Unholy Incubator, Will Swaim breaks down the new regulation that took effect on March 15 which affects every independent contractor in America.
March 21, 2024 // The President of the California Policy Center, host of National Review’s Radio Free California podcast, and watchdog journalist warns about the new federal regulation that effectively makes CA-AB5 national and ends independent contractor status as we know it. As goes California, so goes the nation—from a $20 minimum wage for fast-food workers to rampant homelessness, crime, and reparations—the recovering communist dissects examples of what’s happening in the Golden State and yet to come nationally.
Further appeals to block AB5 from California trucking seen as a long shot
March 19, 2024 // Appeals are possible of the decision Friday in the U.S. District Court for the Southern District of California that emphatically rejected all the arguments by the California Trucking Association (CTA) and the Owner-Operator Independent Drivers Association. But several observers of the legal battle that has gone on for more than four years said that may prove too big a challenge to proceed. “I’m sure that some will advocate for the appeal and exhausting all efforts, but I’m certainly not bullish on the likelihood of success in the 9th Circuit,” an attorney who is not representing any of the parties and requested anonymity said of possible future CTA/OOIDA action. “It is time to ‘move on’ absent the political will to change.”
Commentary: Melissa Melendez And Kevin Kiley: Learn From California’s Disastrous Contractor Rule
March 18, 2024 // According to a brand new study from the Mercatus Center, self-employment in affected industries has declined by a stunning 10.5% in California. Proponents had argued that these workers would simply be “reclassified” as full-time employees, but for many, that has not been the case. The same study found an overall 4.4% decline in employment in the industries that didn’t manage to get an exemption. Amidst these disastrous results, it is still unclear who has actually been helped by the new regime.
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.
New Law Redefines Employees and Contractors
March 7, 2024 // Data suggest worker misclassification may be the exception rather than the rule in many industries. Surveys consistently show that most independent contractors prefer their independence. Around 79% of them prefer their arrangement over a traditional job, according to the U.S. Bureau of Labor Statistics, while fewer than one in 10 contractors want a traditional work arrangement. "Since a lot of older Americans do seek out these flexible forms of work as they near retirement — or after — this rule will likely lead to reduced work opportunities for them." Implemented in 2020 when acting U.S. Labor Secretary Su was California's labor commissioner, California's Assembly Bill 5, or AB5, similarly set out to protect workers by getting more people on the payrolls. But many Californians working as legitimate contractors suddenly lost income after businesses and nonprofits stopped working with them as freelancers and didn't hire them as employees.
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.
How the New Independent Contractor Rule Could Impact the Senior Care Gig Economy
February 27, 2024 // einer notes that the rule’s implementation follows a general movement throughout the country that is making it much harder for employers or businesses to classify workers as independent contractors. “However, since it’s a rule and not a statute, courts don’t necessarily have to follow it,” he says, although federal courts are inclined to follow guidance and rules issued by USDOL. “When the USDOL conducts an audit, they’re going to follow their own rules and guidance,” Weiner says. “Once you’re under an investigation by USDOL, you’re under their control. But because this rule has yet to go into effect, we don’t know necessarily what the overall real-world implications are.”
The Department of Labor Returns to the Totality-of-the-Circumstances Test for Worker Classification
February 6, 2024 // Employers in states with stricter rules must meet whichever standard provides the greatest protection for workers. Regardless of the analysis applied, remember that workers cannot “waive” their status as an employee and voluntarily elect to be an independent contractor. Highly Regulated Industries Take Note The Final Rule purports to address the concerns that compliance with “legal obligations, safety or health standards, or requirements to meet contractual or quality control obligations may indicate control[.]” The DOL sought to address this concern by stating “actions taken by the potential employer for the sole purpose of complying with a specific, applicable Federal, State, Tribal, or local law or regulation are not indicative of control.” However, the DOL makes clear that anything going “beyond compliance” with these laws or regulations potentially indicates control—a distinction likely to be litigated in misclassification disputes. Bottom Line: Franchisors Must be Cautious of the Restrictions and Controls it Places Over Franchisees.