Posts tagged PRO Act
Biden Takes a Destructive California Idea National
February 4, 2024 // The Biden administration appears undeterred by the lessons of recent history. The California law unleashed chaos in the state’s politics and courts. Politicians delegated to union leaders the power to hand out exemptions to politically favored groups. Lawyers, doctors, psychologists, dentists, podiatrists — almost anybody with an advanced degree was exempt. When newspapers editorialized against the new law — noting that they rely on freelance photographers, reporters, editors, designers, and delivery people — they, too, were excluded from the new regulations. Suddenly free from the dead hand of state regulators, the newspapers turned as one and editorialized in favor of the new law. A federal judge said the process was shot through with “corruption,” “backroom dealing,” “pure spite,” and “naked favoritism.” But more important, A.B. 5 crushed tens of thousands of California business owners — those who operate as independent contractors as well as those who employ or otherwise rely on them. Now Biden and Su plan to bring the crazy to every American state.
‘Independent Contractor’ Rule Latest Dumpster Fire Exported From California
January 31, 2024 // One of those infamous policies and the havoc it’s bound to wreak has gone national, thanks to labor department rules issued by the Biden administration. A 339-page Department of Labor rule – you can always count on the federal government to keep it pithy – would make it much harder to be an independent contractor or freelance worker in America. Created to replace a simpler Trump-era rule, it’s modeled on AB5, a disastrous 2019 California law that made independent contracting and freelance work so hard to do that it effectively outlawed it in the Golden State.
Pro-Worker, Not Pro-Union
January 31, 2024 // What the Right has often overlooked in this debate is that the protection of independent-worker status can be coupled with a revamping of worker-benefit options. Lack of benefits is frequently cited as the main drawback of independent work. Republicans could burnish their pro-worker credentials, while protecting businesses from reclassification and other draconian left-wing policies, by proposing a flexible benefit setup for contractors and gig workers that has features similar to a SEP-IRA. It would use a system of employer contributions while giving workers the ability to make pre-tax contributions of their own. The funds could be used for benefits such as paid sick leave, unemployment insurance, or even health insurance, some of which could be purchased through newly created worker-benefit exchanges that act as brokerages for the benefits. Benefit-flexibility concepts can be applied as well to retirement savings, even those of noncontract workers. The current system largely relies on employer-based retirement plans, but many workers find it difficult to roll old retirement accounts over to new jobs. That has led to a proliferation of abandoned “orphan” accounts. Automatic portability for retirement accounts would make it possible for more workers to take their accounts with them to new jobs. Also due is a nuanced rethinking of noncompete agreements in labor contracts. While libertarian notions of the freedom of contract have long led right-leaning policy-makers to resist the imposition of restrictions on contractual arrangements, recent years have seen more free-market proponents question the efficacy of noncompetes with respect to their impact on worker freedom and earnings.
New Research Quantifies Harms To Independent Contractors Of California’s AB5
January 23, 2024 // Despite AB5 proponents’ claims that the law would increase full-time employment and offer benefits and protections, the researchers found “robust evidence that AB5 is significantly associated with a decline in self-employment and a decline in overall employment.” · AB5 reduced the level of self-employment by 6.7 percentage points to 28%. · AB5 reduced the level of overall employment by 7.3 percentage points to 14%. · The researchers did not find significant evidence that AB5 increased W-2 employment.
Opinion: Biden adds to his ‘Bidenomics’ flop: This new rule throws wrench in popular gig economy.
January 22, 2024 // Biden promised to be the “most pro-union president you’ve ever seen,” so he needs to reward all those campaign donations. And Biden’s doing it regardless of the impact on the economy. Independent contractors cannot be unionized, so the more companies lean on these workers, the less ability unions have to organize. It’s really that simple. The Biden administration is trying to sell its new rule as a way to protect workers and make it easier for them to qualify for benefits such as overtime pay and paid time off.
Commentary: States should protect workers from Democrats’ latest assault on their rights
January 19, 2024 // Ending the secret ballot is just one of the ways these Senate Democrats are trying to deprive workers of their rights. They ultimately want automakers to sign a so-called neutrality agreement. As I’ve documented, such agreements typically do three things. The first is to gut the secret ballot in favor of card check. Second, they give unions the personal information of every worker at a company — another violation of privacy and another invitation to intimidation. Finally, neutrality agreements put a gag order on companies, prohibiting them from talking to their workers about unionization. Yet that violates workers’ right to the full information they need to make the best choice. And that’s exactly why unions want to shut companies up — because it makes workers easier to control.
GOP Reps: Biden’s New Rule Rips Freedom Away from Workers, Small Businesses | Opinion
January 17, 2024 // Biden's rule on independent contractors circumvents Congress, the people's representation, to enact a disastrous policy similar to that in California's Assembly Bill 5 (AB5) and the Protecting the Right to Organize (PRO) Act. AB5, enacted in January 2020, led to countless Californians who were working as freelance employees losing their income mere weeks before the COVID pandemic. The radical PRO Act would take away independent contractors' ability to work how they see fit. Taking these failed far-Left policies nationwide would devastate millions of American businesses by depriving individuals of entrepreneurial opportunities, the ability to set their own hours, and the flexibility to care for their families the way it suits them.
Opinion: REI is Right to Question Unions
November 17, 2023 // Following the landmark 2018 Janus decision, public sector unions can’t mandate dues on non-members because it violates their First Amendment rights. The Freedom Foundation reports four of the largest public sector unions have lost a whopping 733,745 members since June 2018. An inconvenient truth: The unionized workforce is rapidly dwindling, making up 10.1% of the U.S. workforce. In comparison, the freelance workforce has grown to 45%—with 72 million individuals engaging in independent contracting full-time, part-time, or occasional. Even if I disagree with their politics, companies like REI demonstrate they can offer better benefits and perks over third-party entities like unions.
Big Labor Is an Economic and Political Dead End
October 26, 2023 // While misguided faux populists like Senator Hawley adopt the policy positions of union leaders who want to force as many workers as possible to fund their self-interested political agenda, other Republicans should stand with workers and co-sponsor the Employee Rights Act. It would protect workers’ right to secret-ballot union elections, the right of freelancers to remain independent (as the vast majority prefer), and allow workers to decide for themselves whether they wish to share personal information with union organizers or support union political spending. Too often, labor issues are inaccurately described as having two sides: “union” and “management.” But this populist moment is the perfect time for Congress to stand up for the oft-forgotten but most important third group: actual workers. The Employee Rights Act would be the perfect start. In the face of President Biden’s advancing radical agenda and some Republicans’ erroneously gravitating towards it, this pro-worker legislation can’t be enacted a moment too soon.
Michigan Legislature Is Mulling An ABC Test
October 13, 2023 // The local Chamber of Commerce warns there will be no exemptions for Michigan’s independent workers (unlike California’s AB5 which exempted over 100 occupations). The Great Lake State currently employs the Internal Revenue Service (IRS) 20-factor test, which is more amenable and receptive to flexible work arrangements. HB 4391, on the other hand, would create an independent contractor disclosure notice to “self-report alleged misclassification issues” to accompany HB 4390. This timing isn’t coincidental. Michigan repealed its right-to-work law earlier this year. As I noted at IWF back in April, here’s the immediate fallout from repealing right-to-work: