Posts tagged Mercatus Center
Proposed NJ regulations would impact up to 1.7 million self-employed workers
August 5, 2025 // Director of Independent Women’s Center for Economic Opportunity Patrice Onwuka told The Center Square that “New Jersey is proposing to alter its employment test that determines whether a worker is an employee or an independent contractor.” Onwuka said that “instead of greater clarity, simplicity, and certainty, the NJ Department of Labor is introducing new uncertainty, confusion, and complexity” with this ABC test. The ABC test would go from three one-sentence factors that must be met to prove independent contractor status to three factors each burdened by numerous sub-factors or, as shown in an Independent Women news release.
Unions don’t deliver for workers
July 11, 2025 // Take the recent UPS layoffs. In August 2023, the Teamsters Union touted its new UPS contract as a historic victory, claiming historic wage increases and increased benefits. Fast forward to January 2024, when UPS announced it was eliminating 12,000 jobs. Just a year later, it said it was cutting its delivery business with Amazon in half by the second half of 2026 and was aiming to shutter 10% of its buildings. Why the cuts? Because the union’s monopoly bargaining power allows it to demand wages that make it tough for companies to stay competitive. When costs climb, even giants like UPS have little choice but to cut jobs or invest less in the future. The UPS saga is a shining example of what the Mercatus report highlights: union power can backfire, leaving workers worse off in the long term.
Commentary Kim Kavin: Worse than California’s AB5
May 6, 2025 // They tried, and failed, to do just that back in 2019-20 with legislation that mirrored California’s disastrous freelance-busting ABC Test law. Independent contractors from all across New Jersey cried foul. Our elected officials ultimately decided this policy was a bad idea for the Garden State. Trenton bureaucrats are now moving to impose this ABC Test interpretation on us all anyway, through rule-making, in their final months of having power before this fall’s election.
Op-ed: The evidence is in: Forcing workers to join unions destroys good-paying jobs
May 5, 2025 // He then noted: “This difference is substantial, equivalent to a 28 percent increase in manufacturing employment” in right-to-work counties relative to their forced-unionism neighbors. Practically all elected officials in the U.S. claim to support the creation of new manufacturing jobs and the retention of current ones. But the many Big Labor politicians in Washington, D.C., who support the elimination of state right-to-work laws and the expansion of union bosses’ forced-unionism privileges to all 50 states are objectively in favor of the destruction of good-paying manufacturing jobs.
New Study: From Gig to Gone? ABC Tests and the Case of the Missing Workers
January 10, 2025 // The introduction of an ABC test caused significant declines in traditional (W-2) employment, self-employment, and overall employment. The ABC test reduced traditional (W-2) employment by 4.73% Self-employment fell by 6.43% Overall employment fell by 4.79% Occupations with high shares of independent contractors experienced the largest reductions in employment. These results suggest that contrary to the intended goal, ABC tests are not altering the composition of workers and leading to more workers becoming traditional W-2 employees, but they are reducing employment for both W-2 employees and self-employed workers.
Independent Contracting in 2025
January 8, 2025 // Independent contractors forgo workplace benefits that employees receive. Portable benefits are a way to give them access to benefits untethered from employment with one employer.
Commentary: Washington, We Have a Problem
December 27, 2024 // The problem is that the figure 11.9 million is significantly lower than figures the government has previously stated about the number of independent contractors in the United States. Those figures, in turn, have been significantly lower than figures we’ve all seen released year after year by numerous other researchers. Several experts were quick to point out that with this new data, the U.S. Bureau of Labor Statistics may have accurately counted what the government set out to count—by asking questions in its own wonky way—but the result is absolutely going to confuse a lot of people.
Opinion: PRO Act Just Gives Unions More Power
April 24, 2024 // Big Labor bosses who desire more resources and power (often in order to steal them or direct them to radical political agendas) hope the PRO Act will complete an 80-year campaign to make America more like Europe, with the strikes, economic sclerosis, and socialist planning for which that continent is known. With the PRO Act having powerful allies in the White House and Congress, it’s time for opponents of Big Labor to take note.
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.”