Posts tagged worker classification
Chair Cassidy, Scott, Paul Release Legislative Package Empowering Independent Workers to Access Portable Benefits
July 7, 2025 // “We applaud Sen. Cassidy for striving to ensure independent contractors can be protected and receive benefits similar to employees without jeopardizing their entrepreneurship or independence. The Unlocking Benefits for Independent Workers Act supports independent contractors and freelancers by allowing businesses to provide benefits without redefining worker status. In today’s evolving economy, flexible work shouldn’t come at the cost of healthcare or retirement security. This legislation helps ensure that all American workers – regardless of classification – can have access to benefits like health care and retirement plans,” said F. Vincent Vernuccio, J.D., President, Institute for the American Worker.
Op-ed: America must lead on the gig economy — or others will set the rules
June 10, 2025 // Look at California’s catastrophic Assembly Bill 5, which tried to reclassify most independent contractors as employees. Instead of improving livelihoods, it triggered chaos. Freelancers across media, transportation, tech, and the arts lost contracts overnight. Self-employment rates cratered. Only after a voter revolt and economic fallout did lawmakers scramble to undo the damage, carving out one exemption after another — a slow-motion admission that they had gone too far. Now, the ILO wants to make AB 5 the global gold standard for the gig economy.
Commentary: Cutting red tape for 64 million American workers
June 1, 2025 // Americans and freedom are a perfect match. We don’t want the government dictating every aspect of our lives. Unelected bureaucrats have no role in deciding how everyday Americans should do their work. That’s why at Americans for Prosperity, we’ve always supported the right of workers to choose what type of work best suits them, and bills like the Modern Worker Empowerment Act and the Modern Worker Security Act do just that.
ATA Endorses Modern Worker Empowerment Act
May 26, 2025 // The ATA official also pointed to a Republican-sponsored bill as a tool meant to reinforce the industry’s support for the Trump-era independent contractor model. The Modern Worker Empowerment Act, introduced by Rep. Kevin Kiley (R-Calif.) in February, would establish a comprehensive test for arriving at a worker classification. “If enacted,” Mehrens explained, “this bill would codify the common-sense framework from the first Trump term to determine whether an individual is an independent contractor or an employee.”
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.
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.
AB5 specifically targets interstate truckers, OOIDA says
August 8, 2024 // “AB5’s blanket prohibition of leased owner-operators constitutes an unreasonable burden on interstate commerce in violation of the dormant Commerce Clause of the U.S. Constitution under the test established by the Supreme Court in Pike v. Bruce Church Inc.,” OOIDA wrote. “Under Pike’s balancing test, AB5’s burden on leased owner-operators is absolute, and the benefits to the state are minimal, if not illusory. There is no cost truckers can incur or administrative hurdle they can overcome to keep their independent contractor small businesses as leased owner-operators.”
Independent contractor classification still murky under new DOL rule
July 8, 2024 // Bill Webb, executive director for the Coalition for Independent Truckers, is skeptical. “To me, it’s just another one of those deaths by 1000 cuts for the independent contractor model,” he said. He believes this year’s November election will be crucial in retaining the current model. “(The DOL rule) does clearly change from a true AB5 model to something a little muddier,
A New Law Could Affect Your Retirement Side Hustle Income
April 10, 2024 // Kavin owns her own freelance writing and editing business in New Jersey and leads Fight For Freelancers USA, a nonpartisan coalition of freelancers from across the country that spans professions from translation to interior design. Around 20% of group members are ages 55 to 64 and nearly 10% are age 65 and older. Some members turned to freelancing after suffering age discrimination that cost them a traditional job, says Kavin. "They still want to work and earn, and the way they're able to do it is as independent contractors," she says. Kavin says she does well as a freelancer and does not want a traditional job, even if she could find one at her age. "It's a lot harder to find a traditional job in your 50s than in your 30s, especially one with the significantly higher level of income that I've been able to achieve as a freelancer," she says. "If I lose this self-employed business that I just spent 20 years building up, there may be no other place for me to go."