Posts tagged worker classification
New Law Redefines Employees and Contractors
March 7, 2024 // Data suggest worker misclassification may be the exception rather than the rule in many industries. Surveys consistently show that most independent contractors prefer their independence. Around 79% of them prefer their arrangement over a traditional job, according to the U.S. Bureau of Labor Statistics, while fewer than one in 10 contractors want a traditional work arrangement. "Since a lot of older Americans do seek out these flexible forms of work as they near retirement — or after — this rule will likely lead to reduced work opportunities for them." Implemented in 2020 when acting U.S. Labor Secretary Su was California's labor commissioner, California's Assembly Bill 5, or AB5, similarly set out to protect workers by getting more people on the payrolls. But many Californians working as legitimate contractors suddenly lost income after businesses and nonprofits stopped working with them as freelancers and didn't hire them as employees.
How the New Independent Contractor Rule Could Impact the Senior Care Gig Economy
February 27, 2024 // einer notes that the rule’s implementation follows a general movement throughout the country that is making it much harder for employers or businesses to classify workers as independent contractors. “However, since it’s a rule and not a statute, courts don’t necessarily have to follow it,” he says, although federal courts are inclined to follow guidance and rules issued by USDOL. “When the USDOL conducts an audit, they’re going to follow their own rules and guidance,” Weiner says. “Once you’re under an investigation by USDOL, you’re under their control. But because this rule has yet to go into effect, we don’t know necessarily what the overall real-world implications are.”
Worker misclassification could cost big bucks for small businesses
February 22, 2024 // Audited companies found to have misclassified employees face significant penalties. Just federally that means repaying all the employer portions of taxes that had been paid by employees and a portion of the employee contribution. There are also interest and penalty costs. “That’s just the tax piece,” Panning said. “If there’s a class action lawsuit by these independent contractors saying we’re employees, we deserve the benefits, then it’s even more because you get into the court system.”
OOIDA lends support in case against AB5
January 30, 2024 // The two trucking groups argue that the law eliminates the independent contractor driver business model in the trucking industry and that it violates the U.S. and California constitutions. OOIDA, which is serving as an intervenor in a case against the state’s worker classification law, told the court in its Oct. 27 reply brief that AB5 needlessly causes genuine independent contractors to be reclassified as employees. “AB5 discriminates against and imposes undue burdens on interstate commerce in violation of the dormant Commerce Clause, and the disparate treatment of AB5’s business-to-business and construction exemptions violates the U.S. and California constitutions’ equal protection clauses,” OOIDA wrote
Opinion Scherer: Government scrutiny of ‘gig workers’ Is misplaced
August 23, 2023 // The Labor Department published a Notice of Proposed Rulemaking on the subject last year, but a final rule isn’t expected until October. Legal experts rightly criticized the proposed rule as an “ABC test in sheep’s clothing.” By this, they mean the rule seeks to mimic a 2018 California Supreme Court test known as the ABC Test, which made it more difficult for companies to hire workers as independent contractors. While it is impossible to know what Labor’s final rule will look like, final rules don’t typically differ significantly from proposed rules, making the prospect of an impartial final rule unlikely. This is terrible news for millions of American independent contractors who overwhelmingly like and support their working arrangements. For instance, a 2020 Morning Consult survey of independent contractors found that 71 percent believed “the freedom of being an independent contractor outweighs the benefits of being an employee.” A more recent 2022 study by MBO Partners found that 76 percent of independent contractors were “very satisfied with independent workers.” In addition, 84 percent said they were “happier” working independently, with 80 percent reporting that independent contracting was better for their health. These views are consistent with Bureau of Labor Statistics data showing that “79 percent of independent contractors preferred their arrangement over a traditional job.”
White House braces for legal challenges over acting labor secretary’s authority
July 26, 2023 // “Congress has become relatively useless at reining in executive power,” Painter, now a University of Minnesota professor, said. “Democrats were furious about Trump raiding the defense budget without the permission of Congress. But then Biden did his $400 billion student loan deal, and Democrats didn’t say a word." "The parties just switch playbooks depending on whether their guy is in the White House or not," he added.
What NLRB’s New Collaboration with Consumer Financial Agency Means for Gig Economy Businesses
March 10, 2023 // If your business relies on gig economy workers, you may want to review your policies on monitoring workers and requiring them to pay for training and equipment. That’s because the National Labor Relations Board (NLRB) announced on Tuesday that it’s joining forces with the Consumer Financial Protection Bureau (CFPB) to address potential misconduct regarding workplace surveillance, monitoring, data collection, and employer-driven debt. The agencies said they will share information to enhance their enforcement efforts and better protect workers in the gig economy and other labor markets from harmful financial practices. What do you need to know about the new Memorandum of Understanding and its impact on the workplace?
Uber, Doordash plunge after Labor Department proposes change to gig worker classification
October 11, 2022 // The Biden Labor Department released a proposal Tuesday that could make it possible for gig workers to be reclassified as employees, rather than contractors. The proposed rule sent stocks of gig companies like DoorDash, Lyft and Uber down. It comes after a court reinstated a Trump-era rule Biden’s Labor Department tried to block that would have made it easier to classify gig workers as contractors.
Gig Economy May See Tougher Contractor Rule After Court Victory
March 18, 2022 // “If David Weil were to be confirmed, there’s little doubt as to how he feels about the independent contractor issue with respect to the AI that he issued,” Lotito said. While the agency’s day-to-day work under acting administrator Jessica Looman doesn’t depend on a Senate-confirmed leader, the absence of a permanent administrator can slow down the agency’s ability to advance large policy changes.