Posts tagged independent contractors
Biden’s Labor Department moves to raise taxes on the American workforce
November 1, 2022 // The Labor Department’s proposed rule would force Americans who don’t want a boss to have a boss. Under current law, independent contractors perform a task or execute a project and present the result to an individual or business for payment. Unlike traditional employees, independent contractors have the freedom to set their own schedules, determine their workload, and can put food on the table without needing a boss. Labor’s new proposed rule would force independent contractors to reclassify as W-2 employees if the worker is “economically dependent” on the entity that is paying him or her.
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.
Assembly Bill 5 is still wreaking havoc in California and across the country
October 24, 2022 // If you needed proof that AB 5 was a flawed piece of legislation from the very beginning, consider the fact that while the rules for who AB 5 applies to are a mere 325 words, they’re followed by almost 7,000 words worth of carveouts. While a 2020 Proposition which rolled back AB 5 with respect to app-based drivers was recently declared unconstitutional, other exceptions put in place by the legislature remain. As a result, politically-connected professions, like lawyers, doctors, and accountants are exempted from AB 5’s onerous requirements. Independent truckers, however, are not among these lucky carve outs, and the state is beginning to feel the consequences. Throughout the United States, approximately 350,000 truck drivers make a living as independent owner-operators—they own their own vehicles and haul loads as contractors for carriers.
Independent Contracting – Proposed Department of Labor Rule
October 19, 2022 // The Biden Department of Labor (DOL) proposed a new independent contractor rule on October 11, 2022 to address what Secretary Walsh deems “misclassification” of workers. This would replace a current DOL rule from the Trump administration that went into effect in March 2021 – a rule which the Biden administration improperly attempted to rescind that provided clarity to the “economic realities” test used to determine the employment status of workers under the Fair Labor Standards Act (FLSA).
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.
New California Law Forces Taxpayers to Pay for Union Members’ Dues
October 17, 2022 // On its surface, the law, Assembly Bill 185, provides $400 million of taxpayers’ money to a select group of people who purchase a private, optional service. (The so-called tax credit is refundable, or available to people who do not pay state income taxes, which makes it a payment instead of tax credit.) The stated intent “is to help individuals with the cost of being a member of a union.” But California lawmakers haven’t passed or proposed bills providing hundreds of millions of dollars to help individuals with the cost of becoming members of AAA or their local gym or farm bureau. So, why the special handouts for labor unions alone?
If You Like Your Uber, Can You Keep Your Uber?
October 14, 2022 // Democratic administrations favor having fewer independent contractors and a standardized set of benefits. This gives more power to unions to organize workers. If Uber were the employer of all drivers, a union could ask Uber to support unionizing the labor force. It is practically impossible to organize independent contractors. Public sector unions made 90 percent of their contributions to Democratic candidates in the 2020 election cycle, according to OpenSecrets.com. With the share of wage and salary workers who belong to unions declining from 20 percent in 1983 to 10 percent in 2021, unions are under pressure to recruit more members to fund union officials’ salaries and member pension plans.
TikTok Creators Want To Unionize, But Experts Warn It Could Be ‘Very Challenging’
October 4, 2022 // Content on the app is monetized through several arrangements. One of those ways is through the Creator Next program: the ground floor hub through which the rest of transaction avenues occur. To be eligible, creators must have over 1,000 viewing hours of their content over the last 30 days. Once in the door of Creator Next, you can be paid directly from fan transactions (tips, video gifts, live gifting), brand endorsement deals (via the Creator Marketplace) or directly through the Creator Fund. Of all the monetization models available to creators on the platform, only the Creator’s Fund refers to its participants as independent contractors of TikTok on their legal Terms page. As such, the Creator Fund is perhaps the only avenue by which creators can form a union and lobby Tiktok for employment status.
Dems Desperate to Deliver Last-Minute Favors to Big Labor Bosses
September 13, 2022 // The NLRB waited 23 months – long after it had gathered the relevant information to issue a complaint – to file the preliminary injunction. The NLRB waited until a week before the JKF8 vote to tip the scales the hardest for the union – and admitted as much in its court filings. Not only did the NLRB intervene at the last minute to improperly influence the employees’ vote, but it did so to protect a workplace bully. While the left claims to care about worker’s rights, clearly only certain workers’ rights matter. The Biden NLRB is willing to promote workplace harassment so long as it furthers Big Labor’s goals. The Amazon case is one of many examples of the supposedly impartial NLRB delivering for Big Labor. Instead of pushing proposals like the PRO Act that would hurt workers, Congress should conduct robust oversight hearings into the NLRB’s conduct.