Posts tagged independent contractors

    Opinion: Congress Must Oppose Big Labor’s “PRO Act” Power Grab

    March 14, 2025 // In the 2024 election cycle, labor unions gave nearly 90 percent of their political donations to Democratic Party candidates. For large unions like the National Education Association (NEA), as much as 99 percent of political donations went to Democrats. The PRO Act is a return on investment for the hundreds of millions of dollars that union bosses continue to pour into Democrat coffers.

    Orange County legislator pushes to restore independent contractor status for manicurists

    March 13, 2025 // Ta, R-Westminster, has taken up an effort that he says would restore independence to California manicurists by challenging a state law he believes unfairly limits their ability to work on their own terms. AB 5, passed in 2019, aimed to tighten rules for independent contractors across various industries, including beauty. The law aimed to protect workers by ensuring they receive benefits like minimum wage, workers’ compensation and other labor rights — protections they could lose if classified as independent contractors. Its goal was to reduce exploitation and hold employers accountable for their responsibilities.

    Senate confirms Lori Chavez-DeRemer as Labor secretary

    March 11, 2025 // “The American people demand and deserve change after four years of economic heartache under the ‘most pro-union administration in American history.’ Unfortunately, Lori Chavez-DeRemer’s record pushing policies that force hardworking Americans into union membership suggests more of the same,” McConnell said. “Most Americans believe joining a union should be a personal choice – not a mandate – which is why more than half the states, including Kentucky, have adopted right-to-work laws.”

    Backgrounder: Modern Worker Security Act

    March 7, 2025 // Rep. Kiley’s legislation would ensure that the offer of portable benefits by companies would not be a factor in any calculation regarding the classification of a worker under “any federal law”—including the FLSA. The legislation defines portable benefits as a work-related benefit that stays with the worker regardless of whether they continue to perform work for that individual. Such work-related benefits can include “workers’ compensation, skills training, professional development, paid leave, disability coverage, health insurance coverage, retirement savings, income security, and short-term saving” or financial contributions toward such coverage—or a combination thereof.

    Commentary ABC: PRO Act Reintroduction Is a Ruse To Appease Union Bosses

    March 6, 2025 // “The reintroduction of the PRO Act displays continued disregard for the livelihoods of small business owners, employees and independent contractors,” said Swearingen. “While Congress has long rejected the PRO Act and its provisions, these legislators continue to pursue failed policies and attack business models and fundamental freedoms that have fueled entrepreneurship, job creation and opportunity for the American worker. “The PRO Act and its harmful provisions would have a devastating impact on the U.S. construction industry and cause significant harm to the nation’s economy,” said Swearingen. “Further, the bill’s provisions would significantly raise economic costs for the nation’s 27 right-to-work states in an effort to increase union power at the expense of worker freedoms and small businesses.”

    The Next Wave Commentary: Kim Kavin

    March 4, 2025 // In the wave of freelance busting that started with California’s Assembly Bill 5, the method of attack was the reclassification of independent contractors as employees. That method created massive backlash everywhere it was tried, so now, a new method is being tried. That new method is called sectoral organizing. This strategy of freelance busting in multiple states is usually a setup for a nationwide attack against us all. Independent contractors nationwide just learned this the hard way, with California’s Assembly Bill 5 ultimately leading to the introduction of the federal Protecting the Right to Organize Act. The freelance-busting brigade is, once again, doing a test run of its idea in the states, with bigger ambitions on the horizon.

    Worker rights? Racial bias? A law change for manicurists prompts debate, confusion

    February 17, 2025 // Since the beginning of the year, licensed manicurists and nail salon owners in Orange County and across the state have been confused about whether a change in state law allows the business practice of renting a booth to continue or not. After an exemption expired under state law, nail salon workers are now subject to a rigorous test to determine if they are independent contractors while licensed aestheticians, electrologists, barbers and cosmetologists remain exempted from it.

    Commentary: Why does the US have it in for gig workers?

    February 9, 2025 // There’s no argument that the gig economy has surged dramatically, particularly since the pandemic. More than 20m new businesses have launched since 2020, the great majority of those representing side hustlers, independent contractors and freelancers. According to data reported in Forbes, an estimated 64 million Americans, representing 38% of the US workforce, did freelance work in 2023, which is up by 4 million people over the previous year, and contributed almost $1.3tn in annual earnings to the US economy. Is the IRS that fearful over the loss of tax revenues? As a business owner, I don’t pay employer taxes when I hire freelancers. But the freelancer is responsible for paying a “self-employment” tax when they file their tax returns, so if they’re doing what they’re supposed to do, there shouldn’t be much difference. Most states have similar tax arrangements. If a taxpayer fails to report those earnings, then that’s on them. They’re breaking the law and risk penalties or even prison.

    ‘We Are Hopeful’ Q&A with Patrice Onwuka and Kim Kavin

    January 24, 2025 // Congress should consider enshrining the Trump-era definition for independent contractors, and/or consider ways to get ahead of the opposition to flexible work. The Employee Rights Act was a federal bill that, among many pro-worker provisions, sought to protect independent contractors as a counter to a national ABC Test in the now-defunct Protecting the Right to Organize Act. Portable benefits also provide a pathway for companies to provide independent contractors with workplace benefits without triggering a reclassification.