Posts tagged independent contractors
Commentary: The Big Fear? A Real Rematch
July 6, 2024 // Just a few hours after the court’s ruling dropped late last week, allowing both ballot measures to proceed, the Massachusetts attorney general made an announcement of her own. She agreed to a deal that will let Uber and Lyft drivers in Massachusetts remain independent contractors, with a minimum hourly wage of $32.50 and some benefits. Interestingly, the attorney general’s announcement noted that the deal averts giving the people of Massachusetts a chance to vote on the matter:
Frisard’s Transportation v. Department of Labor
June 26, 2024 // And the rule affects far more than the 350,000 owner-operator truckers that operate across the nation. It will affect 70 million freelancers in industries across the country, pushing them towards an employment status when 80% of them want to be independent. Similar legislation in California led to a loss of over 10% of freelancers. With the help of the Pelican Institute, Frisard’s has filed a lawsuit against the Department of Labor, arguing that the new rule is arbitrary and exceeds the department’s statutory authority. The company asserts that the rule undermines the certainty businesses and independent contractors need to operate efficiently and is inconsistent with the Fair Labor Standards Act and precedent set by the U.S. Supreme Court and the Fifth Circuit.
N.J. Case Creates Model for Independent Contractor Status
May 17, 2024 // The New Jersey REALTORS®, with legal action support from NAR, submitted amicus briefs in the case expressing concern over the precedent the case could set for brokerages’ ability to decide employee status. The New Jersey association also successfully lobbied state lawmakers to amend the New Jersey Real Estate License Act, often known as the Brokers Act, to clarify that written agreements between a broker and salesperson define the worker’s status. New Jersey lawmakers enacted the amendment in 2018 and, in 2022, passed a further amendment clarifying that the 2018 amendment is retroactive. That change paid off: The New Jersey Supreme Court dismissed the case(link is external) this week.
Fair pay for Uber drivers belongs on ballot, Massachusetts court suggests
May 7, 2024 // A group supported by Uber, Lyft, DoorDash and Instacart is promoting ballot initiatives that would establish that the companies’ drivers are contractors who are exempt from the state’s employment laws — which means that they aren’t entitled to minimum wages, overtime, paid sick leave, unemployment insurance or health benefits. Meanwhile, an initiative promoted by drivers would allow them to form a union and engage in collective bargaining. Both sides claim the other is trying to confuse voters and “logrolling” by combining unrelated provisions into one petition. The state attorney general’s office approved all the initiatives and found itself in the odd position of defending both sides in court.
Opinion: Gambling With a Worker’s Job
May 1, 2024 // But the job losses go beyond anecdotal evidence. In our recent analysis of California’s AB5, which is the first empirical investigation of the law, my co-authors and I find that it is associated with a significant decline in overall employment and self-employment for affected occupations. Self-employment fell by 10.5 percent for non-exempt occupations. Overall employment fell by 4.4 percent in the same professions. Not only that, but AB5 didn’t appear to make up for these job losses by putting more employees on traditional payrolls with better stability, benefits or protections. Our study found no consistent evidence of more workers becoming W-2 employees.
Key shipping company shutters operations; bankruptcy uncertain
April 23, 2024 // The U.S. logistics industry has been battling with financial distress this year with companies filing for Chapter 7 bankruptcy to liquidate, Chapter 11 reorganization, downsizing operations or just shutting down operations.
Minneapolis Is About To Kill Ride-Sharing
April 18, 2024 // Just last month, Seattle's disastrous attempt to enact a minimum wage for app-based food delivery drivers was in the news. The result was $26 coffees, city residents deleting their delivery apps, and drivers themselves seeing their earnings drop by half. Now, the Minneapolis City Council has decided to join the fray in the multifront progressive war against the gig economy—and this time, the outcome could be even worse.
California Carrier and Freight Brokerage Ceasing Operations, Blames AB5
April 18, 2024 // “I blame AB5 for the main reasons our company is closing,” Chaul told FreightWaves on Tuesday. He said all hope that his company would survive faded in March after a federal judge in California rejected trucking and trade associations’ legal challenges to stop enforcement of AB5, a controversial state law that severely restricts the use of independent contractors. “California is a hostile place to operate a business,” he said. “This law has created a hostile operating environment and an environment of unfair competition.”
My Congressional Testimony: Flexible Benefits for a Flexible Workforce
April 17, 2024 // My testimony today focuses on legalizing independent contractors’ access to fringe benefits. My three key points are: 1. Independent contractors lives would be enhanced if they had access to benefits. 2. States are experimenting with various portable benefits models so that workers care not forced to choose between structured employment with benefits or flexible work without benefits. 3. Federal policy can provide a safe harbor for state and local experimentation with these portable benefits systems.
Commentary: JOHN STOSSEL: Unions Wanted To Help Freelance Workers. Now They Lost Their Jobs
April 17, 2024 // Vox called the law “a big win for workers everywhere.” Ha! A few months later, Vox media layed off hundreds of freelancers. “They expected that all these companies were going to reclassify independent contractors as employees,” freelance musician Ari Herstand told me. “In reality, they’re just letting them go!” Herstand was dismayed to learn that when he wants other musicians to join him, he could no longer just write them a check. “I have to put that drummer on payroll, W2 him, get workers’ comp insurance, unemployment insurance, payroll taxes!” he complains. “I have to hire a payroll company.”