Posts tagged independent contractors
The Port Strike Is a Reminder That Unions Have Too Much Power
October 18, 2024 // Union bosses can only behave this way because they have monopoly power over labor supply in certain industries. A 62% wage increase would cripple any normal business. Big Labor’s monopoly power, buttressed by an executive branch that greases the skids for union interests at every turn, allows union bosses to extract exorbitant benefits from port employers. This arrangement has benefited Daggett handsomely, given that his more than $1 million annual salary has afforded him a yacht, luxury cars, and multiple mansions.
The Highest Stakes Commentary: Kim Kavin
October 16, 2024 // In this version of the ABC Test, Part B states that a person can only be a legally operating independent contractor if: The person performs work that is outside the usual course of the hiring entity’s business. That line has been an unmitigated income- and career-destroyer for Californians in more than 600 professions. It hit everyone from comedians who could no longer perform at comedy clubs to translators who could no longer provide translation services for translation companies to freelance writers who could no longer write articles for publishers. Owner-operator truckers are still battling in the courts and trying to explain how it could decimate the supply chain, with the threat of taking so many self-employed truckers off the road. The damage to people’s livelihoods was so significant that within a year—just one year—of AB5 going into effect:
Massachusetts Ballot Measure Would Shove Rideshare Workers Into the Arms of Unions
October 12, 2024 // Even as independent contractors, however, unions still threaten drivers’ flexibility. Unions might negotiate standardized rates, mandatory breaks, or limits on working hours, which, while beneficial in some industries, could restrict a driver’s ability to capitalize on peak demand periods or adjust their work hours to fit personal schedule. The risk of such changes only magnifies when one considers that the Ballot Measure only requires a 25% vote from drivers to form a union that would represent them as a whole. This means that the 30% of drivers working full-time, who would benefit most from being treated like employees, might be able to dictate policy for all rideshare drivers.
Pa. bill would give Uber, other app drivers benefits, but critics say they would lose more
October 6, 2024 // For years, labor advocates like the NELP have challenged app-based companies’ assertion that their drivers are independent contractors, arguing instead that they meet the threshold of being full-fledged employees covered by state unemployment and workers’ compensation and potentially be eligible for employer-sponsored healthcare and other benefits. Companies like Uber have argued that drivers are contractors because they aren’t required to accept any specific fare, and many prefer the flexibility of working gig-to-gig.
DOL Making it Harder to Hire Independent Contractors
October 1, 2024 // The DOL’s test is just one of many. The IRS uses a “right-to-control” test, which is generally more business-friendly, focusing on whether the hiring firm controls how the work is done. In contrast, many states apply the strict ABC test, where a worker must: ⦁ be free from the company’s control, ⦁ work outside the usual course of the hiring firm’s business, and ⦁ be engaged in an independent business or trade.
Feeding the Kitty
September 30, 2024 // Unions have pursued shareholder resolutions asking for a “free and fair election process,” meaning card check and neutrality. They have also sought to pass resolutions demanding audits of a company’s labor practices. It’s not hard to see how a future resolution could explicitly try to prohibit companies from using independent contractors.
Commentary: The Teamsters nonendorsement is an opening for Republicans
September 26, 2024 // This fact has been clear since Trump’s first term. He and his fellow Republicans repeatedly pursued policies that union leaders loathed but union members loved. He protected the rights of independent contractors, which has the support of 67% of union households. Sixty-four percent backed his protection of franchise small businesses from union control. Trump also sought to increase transparency and disclosures of union finances, which 81% of union households support. A second Trump term could see the GOP make further progress on union-member priorities. Polling shows that union members want guaranteed secret-ballot voting, protections for worker privacy, and right-to-work laws — all Republican policies. Yet union leaders oppose these same priorities. The Teamsters president made this fact clear in his speech to the Republican convention this summer, railing against the very policies his own members support. Republicans should ignore union leaders’ far-left demands. They should also ignore union-curious “conservative” groups that want Republicans to compromise on their principles.
Robert Boland: The future of college athlete pay hinges on the presidential election
September 25, 2024 // Most athletes would stand to gain much more from the actions of the NLRB, which could permanently classify collegiate athletes as employees of their universities. This would afford them not only the right to wages but also additional employee benefits such as workers’ compensation, unemployment insurance, and the right to both unionize and collectively bargain with their schools. The Biden-Harris administration — as well as its NLRB appointees — has been very labor-friendly, and we could expect a Harris-Walz administration to maintain the same approach. However, Republican appointees would be more likely to reject unionization and maintain the NCAA’s status quo — however uncertain — without granting student-athletes employee status or benefits.
Harris Pushes Gig Workers, Contractors into Corporate Jobs with New Rule
September 25, 2024 // America already has too few people working. If the employment rate were the same as it was before the COVID-19 pandemic, 2.9 million more people would be working today. The last thing Americans need is another regulation that makes it harder to make a living and to afford the rising cost of living. Although the Biden-Harris regulation has only been in effect since March, and it’s too early to fully study its effects, the employment-to-population ratio dropped by 0.3 percentage points between March and July. This decline represents a loss of 700,000 workers.
Op-Ed: Painting the Targets
September 24, 2024 // I next went looking for data about union density—the percentage of employees in an industry who are union members—in New York and California. For New York City, Hofstra University’s Center for the Study of Labor and Democracy put together this report showing industries that have seen declines in union membership. About half of the industries line up with those listed on the independent-contractor complaint form: