Tag: freelancing

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crime and punishment national politics & policies regulation

Stop the Work Stoppers

Labor Department, gig economy, freelancing

Republican Representative Kevin Kiley of California has introduced H.J. Resolution 116 to block “the rule submitted by the Department of the Labor relating to ‘Employee or Independent Contractor Classification Under the Fair Labor Standards Act.’ ”

116 is a legislative attempt to thwart legislation by regulators.

Labor’s rule is modeled on the AB5 Act passed in California several years ago. Catering to unions, AB5’s idea was to kill the livelihoods of many gig workers or freelancers by making it much harder for companies and independent contractors to deal with each other.

The new rule, too, aims to kill competition with unions and expand the pool of employees who can be unionized.

AB5 caused a firestorm, leading to citizen initiatives, court battles, and victories and setbacks for besieged employers and freelancers. There’s been some backtracking of AB5, in part because sponsoring lawmakers realized that it hurt even favored constituencies. But California is still a land mine for would-be freelancers.

The Labor Department is trying to impose AB5-style reclassification on the national level now that national lawmakers have failed to pass legislation to do it.

These days, the many dictators in our government often regard legislative means of passing legislation as an option only of first resort. If that fails, well, stick it to the people some other way.

So Kiley — and, hopefully, an effective congressional majority — must pass a law saying no, regulators, you may not pass this law in the guise of a regulation.

This is Common Sense. I’m Paul Jacob.

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initiative, referendum, and recall judiciary

The Ultimate Legislature

California, AB5, gig work, freelance driver

Proposition 22 was supported by 59 percent of California voters last November.

The statutory initiative partly reverses the destructive effects of AB5, a law that forced many California gig workers or freelancers to be treated as regular employees who must receive benefits — whether these gig workers like it or not.  

One notices at Ballotpedia that all the listed opponents of this measure were politicians, including our current Vice President (then Senator) Kamala Harris as well as socialist Bernie Sanders, while the diverse list of Prop 22’s supporters included: the California Chambers of Commerce along with the Black, CalAsian, and Hispanic Chamber of Commerce, Crime Victims United of California, California Farm Bureau Federation, California NAACP State Conference, California Small Business Association, and Mothers Against Drunk Driving.

The benefits of the so-called gig economy are politically opposed and diversely appreciated. 

Unions funded the opposition, though far outspent by the prosperous app companies: Uber, Lyft, Doordash, etc. Those same unions, having failed to win over voters, then filed suit to block implementation of Prop 22.

‘The Court finds,” reads Judge Frank Roesch’s opinion, “that Section 7431 is unconstitutional because it limits the power of a future legislature to define app-based drivers as workers subject to workers’ compensation law.”

Simply. Not. So.

A statutory California initiative can only be changed via a vote of the people, whether that vote happens because the legislature places the change on the ballot or citizens do so through the initiative petition process. 

The voters are the ultimate legislature. 

Therefore, nothing prevents the elected California Legislature from providing a change to ultimately be decided by the people of California, i.e. the whole legislature, at the ballot box.

For good reason, the judge’s decision is being appealed.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets national politics & policies

First, Fire All the Freelancers

freelance, law, Congress

Congress is about to make the lives of an awful lot of people an awful lot harder.

So what else is new?

But the legislation in play does seem new — in suddenness and scope. 

It would impose massive newfangled regimentation on how we make a living. And it would kill the livelihoods of millions of people.

I refer to people who do gigs and freelance assignments for a living. One might ask why Democrats have it in for this kind of worker. Is it to appease unions? Is it the result of the same ideological forces that drove Karl Marx to despise the professional classes, needing to turn everyone into a prole? 

After all, this anti-freelancer agenda is not new. Similar legislation, called AB5, was tried a few years ago in California, instituted at the behest of activists eager to reduce competition with union work and remove chances for non-9-to-5 ways of making a living.

The premier target was ride-share companies Uber and Lyft. But many were caught in the net. AB5 created havoc throughout the state. Even socialist freelancers hated its mass murder of options and opportunity.

AB5-style congressional legislation to outlaw gig or freelance work except under very restricted circumstances is now being discussed in the U.S. Senate after having passed the U.S. House. It would also give unions many ugly new weapons to use to impose themselves on employees and employers.

In California, AB5 was mostly repealed by a citizen initiative.

Will there be a national citizen initiative to also promptly repeal the Protecting the Right to Organize Act? Unlikely, since Americans currently lack the right to enact national citizen initiatives.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Leave California

California, gig economy, freelancing, contractor

Should Uber and Lyft abandon California? 

At issue is the anti-freelancer statute AB 5, passed last year in the Golden State, which outlaws independent contractors in many industries.

Including the wildly successful ride-sharing business.

Horrified, threatened, Uber and Lyft have declared their willingness to suspend operations in California if they are forced to reclassify independent contractors as employees. 

You see, wage and salary contracts are heavily regulated already, and switching from independent contractors to employees means drivers would be entitled to expensive benefits. 

Which would upset the gig economy business model.

A model Democrats hate. This assault on independent contractors is something that Democratic presidential candidate Joseph Biden wants to impose nationwide. 

The Democrat-controlled U.S. House passed such legislation in February.

For now, a court order has given the companies a temporary reprieve from another court’s order mandating compliance. 

Maybe the dueling decrees will end well for the ride-sharing companies, allowing them to function. Maybe not. There’s also a citizen initiative in the mix. Proposition 22 on the fall ballot would substantially modify AB5 to make it possible for at least some freelancers to do their jobs in the state of nearly 40 million people.

On the other hand, should California officials succeed in imposing their mandate on the ride-sharing firms, Uber and Lyft should follow through on their threat and leave.

The consequences of such attacks on the market should be made as plain as possible as rapidly as possible so that as many people as possible can make the connection between cause and effect.

This is Common Sense. I’m Paul Jacob.

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too much government

Unnatural Disaster

California, gig, economy, regulations, freelancing, labor, employment,

Just get rid of it.

The “it” is AB-5, the absurd new law attacking California freelancers. 

And those articulating the good riddance are the “151 Ph.D. Economists and Political Scientists in California” who have signed an open letter to California Governor Gavin Newsom and the state legislature.

The lawmakers who last year foisted the measure on Californians pretended that they were doing gig workers a big favor by making it impossible, in many cases, for companies to hire them for regular short-term jobs.

After the legislation passed, many independent contractors quickly lost work — lots of work. For example, Rev, which produces transcripts and captions, said goodbye to all of its freelancers based in California. Many other companies — reluctant to be prosecuted for the crime of engaging in voluntary economic relationships between consenting adults — also ended relationships with freelancers.

Apparently, the anti-gig lawmakers did not realize that losing one’s means of paying for food and rent is not that helpful. 

Tornadoes, hurricanes, and pandemics have a way of highlighting the importance of the economic and other institutions that make human survival and civilization possible. 

AB-5 is like a natural disaster in its effects . . . but not natural.

“By prohibiting the use of independent contractor drivers, health care professionals, and workers in other critical areas,” the open letter explains, “AB-5 is doing substantial, and avoidable, harm to the very people who now have the fewest resources and the worst alternatives available to them.” 

The solution is “suspend AB-5.” 

It was always the solution, the obvious solution. 

But now it is even more obvious.

This is Common Sense. I’m Paul Jacob.

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California, gig, economy, regulations, freelancing, labor, employment,

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