Posts tagged 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.
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.
Opinion: Congress Doesn’t Care About Freelancers — and It May Cost Them at the Polls
August 11, 2024 // Supporters of reclassification do not understand how essential independent contracting is to our livelihoods. This was evident in 2020 in the fight against California’s AB5—a law implementing a restrictive ABC test that reclassified many independent contractors as employees and inspired the DOL’s new rule. One elected state official claimed the independent status being stripped from us was just “taking away our lollipops.” Instead, AB5 hollowed out self-employment, pushed up unemployment, and destroyed many livelihoods in the process. While California is not in play in this election, Virginia is. Independent professionals are aware of what they will lose if similar policies are nationalized.
COMMENTARY: No Means No
July 29, 2024 // Don’t let the language of protection and freedom fool you. When someone refuses to take no for an answer, that’s not protection. It’s an attack on our freedom to choose self-employment. It’s an attempt to change the laws and regulations that protect us from them. What we are experiencing has a name. This is what zealotry looks like. It’s the behavior of fanatics who are uncompromising in the pursuit of what they want, no matter how detached from reality their beliefs are, and no matter how many people they hurt in the process.
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.
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.”
IWF Signs Independent Contracting Coalition Letter
March 18, 2024 //
Over 30 Leading Policy Groups Send Coalition Letter to Congress Raising Concerns with Department of Labor’s Independent Contractor Rule and Its Crushing Impact on Independent Workers
March 11, 2024 // Vincent Vernuccio, president of Institute for the American Worker, said, “Instead of empowering workers to make their own decisions to earn a living in the best way to support their families, many policymakers in Congress and the White House want to stifle worker freedom and flexibility. The vague and authoritarian DOL rule will hold back growth, destroy jobs, and harm the very workers it purports to help.”
Opinion: Biden rule threatens to throw independent contracting into disarray
March 6, 2024 // For example, the U.S. Postal Service uses 7,900 contracted delivery services to reach about 3 million of its delivery points. The plainclothes carrier who delivers mail via her personal vehicle to my home in Shenandoah, Va., is presumably one of these contract drivers. Under the Biden administration’s new rule, she and potentially thousands of individuals like her would almost certainly be considered employees. That is because the work these contractors perform is “integral” to the Postal Service; the Postal Service exercises a high degree of direct and indirect control over these individuals by mandating where and when the work must be done, and the delivery contractors are not exercising significant “skill” or “initiative.”
Commentary: New Research Exposes Flaws in California’s Independent Contractor Law
February 28, 2024 // The theory behind both AB-5 and the DOL’s recently finalized regulation for classifying independent contractors or employees under the Fair Labor Standards Act is the same: by making it harder to maintain independent contractor relationships, independent contractors will be converted into traditional employees. The Mercatus study suggests this theory has failed in California. The question is whether DOL has learned anything from that example.