Posts tagged Worker misclassification
Reclassifiying Rhode Island’s independent workforce could cost the state millions
May 25, 2023 // Actual instances of misclassification are already addressed by existing laws. And if workers desire to obtain benefits, health care, or otherwise, they need not be traditional employees to do so. To prevent forced misclassification in Rhode Island, lawmakers should propose reforms like portable benefits to allow workers to maintain their independence yet apply for benefits as needed. Utah just pioneered this reform to allow worker benefits to follow workers, not employers. With a portable benefits system in place, forced reclassification efforts like SB 430 can be defeated. As of December 2022, 27 percent — or 85,116 self-employed gig workers — of Rhode Island’s small business workforce engages in independent contract work. That should be celebrated, not undone by misguided policymaking that seeks to correct a non-problem.
Businesses Cry Foul on DOL Messaging for Trump Gig Worker Rule
May 8, 2023 // “My discussions with DOL investigators and the solicitor’s office out of Atlanta was exactly the same before the Trump regulations and after the Trump regulations,” McCutchen said. In her interactions with the agency, WHD investigators mentioned and recognized the agency was bound by the Trump rule, but didn’t follow the structure of the Trump test when analyzing whether one of her clients was a contractor or an employee, she said. “They didn’t say, ‘Let’s look at the two core factors,’” she explained, “or, ‘Now we’re going to look at the three additional factors,’ which is the structure of the Trump regulations. They didn’t do that.” The Trump rule has been in place for over two years, and given how it diverged from the Obama-era approach to worker classification, the department should be reaching out to field officers and offering training and guidance, said Michael Lotito, co-chair of Littler Mendelson PC’s Workplace Policy Institute. Simply acknowledging the rule isn’t enough, he added.
DOL Nominee Julie Su An Aggressive Enforcer, Inept Manager
March 8, 2023 // She was also a supporter of the state’s disastrous AB5 law, which was intended to force rideshare companies and other so-called gig economy businesses to treat their workers as regular employees rather than short-term workers. Su tweeted in 2019 that the law was “about preserving labor standards that are key to quality jobs in California.” There was little evidence the law wanted by or beneficial to rideshare drivers. Meanwhile numerous other traditional freelancing jobs were disrupted by the law, forcing state legislators to amend the bill to carve out many professions. Eventually state voters would pass Proposition 22 which exempted rideshare drivers from the law, stripping out the main thing its advocates wanted. The law contributed to California lagging behind the rest of the nation in jobs during the pandemic. Ironically, Su, should she be confirmed, will have another shot at it. The department already has a rulemaking in the works to go after employers for “worker misclassification” i.e., classifying them as freelancers rather than regular employees for whom the company must pay overtime and unemployment –a national version of AB5, with all the problems of that law.
Department of Labor Rule – Coalition Letter
July 22, 2022 // The January 7, 2021 DOL rule has provided clarity to the decades-old economic realities test for the modern workforce, helping to apply determinations in light of the different types of work and technologies used to work and connect with customers today. Instead of removing this clear and sensible standard and attempting to diminish or eliminate independent contracting, we urge you to preserve paths to self-employment that allow tens of millions of working Americans, parents of children with special needs, workers seeking career changes, disabled workers and workers caring for disabled family members, and entrepreneurs growing small businesses of their own to pursue work on their own terms. Brent Wm. Gardner, Brandon Arnold, Grover Norquist, Michael J. Lotito, Greg Sindelar, Krisztina Pusok, Ph. D., The American Consumer, American Legislative Exchange Council, Lisa B. Nelson, Center for Freedom and Prosperity, Andrew F. Quinlan, Robert Fellner, Heather R. Higgins, Independent Women's Voice, Bethany Marcum, Alaska Policy Forum, Mike Stenhouse, Mike Hruby, New Jobs America, Paul Gessing, Rio Grande Foundation, Seton Motley, Less Government, Robert Alt, Steve Delie, Brian Minnich, Daniel Erspamer, Pelican Institute, Eric Peterson, Pelican Center for Technology and Innovation, Randy Hicks, Georgia Center for Opportunity, Alliance for Opportunity, Jeffrey Mazzella, Center for Individual Freedom, Douglas Carswell, Mississippi Center for Public Policy, David Williams, Taxpayers Protection Alliance, Ryan Ellis, Center for a Free Economy, Phil Kerpen, American Commitment, James Taylor, The Heartland Institute, Adam Brandon, FreedomWorks, Elaine Parker, Job Creators Network Foundation, Brandon Dutcher, Oklahoma Council of Public Affairs, Thomas A. Schatz, Citizens Against Government Waste, Justin Owen, Beacon Center of Tennessee, Matthew Kandrach, Consumer Action for a Strong Economy, Charles Mitchell, Commonwealth Foundation, James L. Martin, 60 Plus Association, Saulius “Saul” Anuzis, 60 Plus Association,
Pennsylvania Task Force Wants To Import California’s Catastrophic ‘ABC Test,’ Crush Independent Contractors
March 3, 2022 // However, since the PRO Act is currently stalled in the U.S. Senate—and may be impossible to pass after the 2022 mid-term elections—unions and their political allies are trying to put the ‘ABC Test’ into effect in the statehouses.