Posts tagged self-employment
Op-Ed: Rep. Kevin Kiley and Isabel Soto: The future of work is flexible
May 5, 2025 // At its core, the issue of independent work centers on the freedom for individuals to work as they choose, to support their families on their own terms, and to participate in the economy without being held back by outdated, stifling regulations. The Modern Worker Empowerment Act and The Modern Worker Security Act offer a commonsense alternative that safeguards this freedom. Congress must embrace policies that remove barriers to the modern labor market, not stifle the individual who wants to work. As the economy evolves, labor laws should support worker choice, economic participation, and innovation. These bills are a critical step forward and deserve broad bipartisan support.
Liya Palagashvili: The Portable Benefits Revolution: How Did We Get Here?
May 1, 2025 // Senator Bill Cassidy just put flexible benefits on the map. This is the story of how a niche policy idea climbed to the top of the Congressional agenda.
Tennessee Supports Independent Workers
April 7, 2025 // A portable benefits account is designed to empower contract and freelance workers by helping them save for key benefits such as health insurance, income replacement, retirement, and disability insurance. These accounts are owned by—or legally tied to—the worker and remain with them as they move between jobs, industries, or locations. This portability gives independent workers the flexibility and security they need to thrive. This year, Senator Bo Watson sponsored SB1377, accompanied by Representative Charlie Baum’s HB494, which allows any person or entity to contribute to a worker’s portable benefits account. The legislation includes three key protections
Commentary: Freelance Busting: The Ratio Reality
March 11, 2025 // Democrats, led by Senate and House Minority Leaders Chuck Schumer and Hakeem Jeffries, both of New York, just reintroduced the Richard L. Trumka Protecting the Right to Organize Act. Named for a former head of the AFL-CIO, this bill, H.R. 20, does the same thing that California Governor Gavin Newsom claimed AB5 would do. The PRO Act aims to reclassify independent contractors as employees as a way to empower union organizers. As Jeffries put it in Congress: “When our unions are strong, the United States of America is strong.” Republicans, led by Rep. Kevin Kiley of California, put forward the Modern Worker Empowerment Act. This bill, H.R. 1319, aims to stop California’s experiment from spreading. It would protect everyone’s freedom to be our own bosses. As Kiley put it: “California’s disastrous AB5 law wreaked havoc on independent workers, stripping them of their ability to work on their own terms and forcing businesses to cut off contractor relationships. Shifting federal regulations threaten to impose similar uncertainty nationwide, putting millions of workers at risk.”
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.
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.
Commentary: Plan B is Activated
November 19, 2024 // They are now turning to Plan B, which is sectoral organizing. And they notched a big win in the recent election with a ballot proposition in Massachusetts—a win that the mainstream media is heralding as a good thing. In fact, the same pro-union media bias that we saw with reclassification attempts such as Assembly Bill 5 and the PRO Act is simply resetting and restarting anew. Now, it’s being used to promote this other way of trying to limit self-employment.
Commentary: More Jobs, Fewer Workers: Is the Labor Market Strong or Weak?
November 5, 2024 // Even after factoring in the BLS’s acknowledgment that its reports overstated job gains by 818,000 from March 2023 to March 2024, there still appears to be about five times as many new jobs created over the past year as there are additional people working. While media reports and markets tend to focus on jobs reports, what matters most to the economy and to human flourishing is how many people are working. Currently only 60.2% of people ages 16 and over in the U.S. are working. This is a gap of about 2.6 million workers compared to pre-pandemic employment rates.