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Tag: independent contractors

  • Uber and Lyft drivers in California are able to unionize under new law

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    California governor Gavin Newsom signed legislation on Friday that grants rideshare drivers in the state the right to unionize. It’s the second state to grant organizing rights to rideshare drivers, who are independent contractors, following the passage of a similar law in Massachusetts in 2024. There are over 800,000 rideshare drivers in California, and the bill that was just signed into law “establishes a clear legal framework for union certification, bargaining processes and enforcement,” according to a press release from the office of Assemblymember Buffy Wicks.

    This means drivers working for companies like Uber and Lyft will be able to collectively bargain for better pay, benefits and working conditions. Under the terms of the law, driver organizations will be able to apply for union recognition starting in May 2026 as long as they have support from at least 10 percent of active rideshare drivers in the state. The organization would then need support from at least 30 percent of active drivers to begin bargaining on their behalf. 

    As part of a deal made in September, Newsom also signed a measure that reduces the insurance coverage requirements for Uber and Lyft in the case of accidents caused by uninsured drivers, Associated Press reports.

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  • How to Attract Freelancers Back to Traditional Roles | Entrepreneur

    How to Attract Freelancers Back to Traditional Roles | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In recent years, the labor market has witnessed a profound transformation, called the “Great Resignation,” where record numbers of employees left their jobs in search of something more fulfilling. Many individuals now choose the path of freelancing and independent work over traditional employment. This shift is largely fueled by a quest for flexibility, autonomy and the pursuit of work that resonates on a personal level.

    Technology has played a pivotal role in this transition, making it easier than ever for individuals to find freelance work, manage projects and communicate with clients from anywhere in the world. This digital revolution, combined with a growing cultural emphasis on work-life balance and meaningful employment, has made the freelance lifestyle more attractive and feasible.

    However, the allure of independence doesn’t just hinge on being one’s own boss or setting one’s hours. Many are drawn to freelance work because of the severe mismatches they perceive in traditional job environments, which often lack flexibility, fail to offer compelling career paths or neglect to align with modern values like sustainability and inclusivity.

    Related: From the Great Resignation to Quiet Quitting, Here’s Why Good People are Really Leaving and How to Keep Them.

    Strategies to attract independent talent back to traditional work

    As the landscape of work undergoes its most significant transformation in decades, traditional businesses must innovate not just to survive but to thrive. Here are several strategies that can help re-attract independent workers:

    1. Flexibility and autonomy: One of the most cherished aspects of freelance life is the ability to control one’s schedule and work environment. Traditional companies can appeal to this need by offering flexible working arrangements. This might include options for remote work, flexible hours and results-oriented performance metrics instead of strict clocking in and out. For example, a tech company could implement a “results-only work environment” (ROWE) where employees are judged solely on their output and not when or where they complete their work.

    2. Project-based roles: Many freelancers enjoy the diversity of working on different projects, which keeps their daily routines dynamic and engaging. Companies can capture this interest by creating project-based roles or temporary positions that allow workers to contribute to specific initiatives with a clear end date. This approach not only satisfies the worker’s need for variety but also gives companies the flexibility to scale labor up or down based on current needs.

    3. Cultural alignment and values: Modern workers, particularly millennials and Gen Z, are increasingly drawn to companies that reflect their personal values. Businesses that prioritize sustainability, diversity, equity and inclusion are more likely to attract independent talent who are looking for more than just a paycheck. Publicizing initiatives and real impacts in these areas can make a traditional employment setting more appealing. For instance, a company might highlight its commitment to reducing carbon emissions or its active role in supporting local communities.

    4. Professional development and career growth: Freelancers often invest in their own skill development to stay competitive. Companies that offer robust training programs, regular workshops and opportunities for career advancement can draw independents back into the fold. Highlighting a commitment to employee growth can assure potential hires that they will not stagnate but continue to develop professionally. An organization might, for example, offer an annual stipend for employees to attend conferences or take courses relevant to their jobs.

    Related: “No One Wants To Work Anymore” Is a Phrase Old as Dirt. Here’s How to Really Attract and Retain Employees in the New Age of Work

    Benefits to companies and workers

    The integration of independent talent back into traditional companies offers substantial benefits to both parties:

    Increased innovation and creativity: Independent workers often bring fresh perspectives and innovative ideas gained from diverse project experiences. By incorporating these freelancers into their workforce, companies can foster a more creative environment, driving innovation. For instance, Google has leveraged independent contractors for various projects to inject new ideas and approaches, which has often led to breakthroughs in technology and user experience.

    Flexibility and scalability: The ability to scale workforce capabilities up or down depending on project demands is a significant advantage for companies facing fluctuating market conditions. Freelancers provide a flexible labor pool that can be tapped into as needed, reducing the overhead associated with permanent staff while still meeting business goals.

    Diversity of thought and skills: Freelancers typically work across a range of industries and disciplines, bringing a wealth of diverse skills and viewpoints that can enhance problem-solving and decision-making within traditional firms. This diversity can lead to better outcomes and a more resilient business model.

    Enhanced employee satisfaction and retention: By adopting flexible work policies and valuing professional growth, companies can improve overall job satisfaction among all employees, not just freelancers. This can lead to higher retention rates and a more engaged workforce.

    As the fabric of the workforce evolves into a mosaic of traditional employment, freelancing and independent contracting, businesses stand at a pivotal crossroads. The phenomenon known as the “Great Resignation” signifies a deeper, underlying shift — a redefinition of what it means to work and to be fulfilled by one’s labor. This is not just a trend but a transformation in the ethos of work itself, driven by a generation that seeks purpose, autonomy and flexibility.

    Related: The Best Employees Want More Than Just Money. Here Are 6 Ways to Attract Them.

    Adapting to this new reality requires more than superficial changes; it demands a fundamental rethink of how businesses structure work, engage with employees and define their corporate culture. Strategies like enhancing workplace flexibility, embracing project-based roles, aligning organizational values with those of a changing workforce and fostering continuous professional development are vital. Yet, they are merely the starting point of a broader dialogue about work in the 21st century.

    As business leaders, it is imperative to challenge the status quo and critically assess whether your current practices meet the needs of a diverse and evolving workforce. Engage in conversations with both your teams and independent professionals to understand their perspectives and needs. Implementing the discussed strategies should not be seen as a checklist to complete but as part of a larger, ongoing process of organizational transformation.

    Explore collaborative models that benefit both your company and the independent talent. Such models should not only attract but also sustain a relationship that nurtures mutual growth, innovation and respect. The future of work isn’t about choosing between traditional and independent paths but about creating an ecosystem where both can thrive together.

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    Tyler King

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  • Minneapolis is about to kill ride-sharing

    Minneapolis is about to kill ride-sharing

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    Just last month, Seattle’s disastrous attempt to enact a minimum wage for app-based food delivery drivers was in the news. The result was $26 coffees, city residents deleting their delivery apps, and drivers themselves seeing their earnings drop by half. Now, the Minneapolis City Council has decided to join the fray in the multifront progressive war against the gig economy—and this time, the outcome could be even worse.

    In March, the Minneapolis City Council enacted an ordinance that creates a minimum wage rate for ride-share drivers in the city. It does so via a per-minute and per-mile calculation, which is currently set at $1.40 per mile and $0.51 per minute. It also sets a floor of $5 if the trip is short and otherwise would cost below that level.

    The council claims it enacted the ordinance to ensure that ride-share drivers in the city were paid at an amount analogous to the city’s $15.57 per hour minimum wage. Even putting aside the traditional economic arguments against the minimum wage—see California’s recent fast-food minimum wage law as Exhibit A—the council’s logic fails on its own terms. The day after the city council initially passed the ordinance, the state Department of Labor and Industry released a report showing that a lower $0.89 per mile and $0.49 per minute rate would be sufficient to make driver pay equivalent to the $15.57 minimum wage.

    As a result, the ordinance was immediately vetoed by Minneapolis’ liberal mayor—the second time in two years the mayor has vetoed such a measure from the council—only for the council to then override the veto a week later. While the council did not have access to the state’s report for the first vote, it had over a week to review it before the veto-override vote. Incredibly, one city council member even suggested that the state’s report somehow convinced her to change her vote from “no” to “yes” on the minimum wage between the initial vote and the override vote.

    In response to the council’s override, ride-sharing companies like Uber and Lyft have announced they are planning to pull out of the Minneapolis market entirely unless the council reverses course. The ride-share companies originally were set to leave the city on May 1 when the ordinance went into effect, but after a last-minute agreement by the council to delay the ordinance’s effective date to July 1, the ride-share companies are in wait-and-see mode.  

    If the council refuses to back down by July, it will cause even deeper ramifications for city residents than the higher food prices that Seattleites saw in the wake of their aforementioned minimum wage hike for delivery drivers. The ride-share companies have indicated that while they would support the minimum compensation levels proposed in the state’s study, the city’s higher rates are cost-prohibitive.

    Panic has set in among many lawmakers at the state capital, with some calling for the Legislature to preempt the Minneapolis ordinance. Democratic Gov. Tim Walz, who previously vetoed a statewide version of a minimum wage bill for ride-share drivers, has stated that he is “deeply concerned” about the prospect of losing ride-sharing services in the Twin Cities. 

    The concern is well-founded since a ride-share pullout would disproportionately impact the city’s senior citizens and disabled residents who often rely on these services to survive. Accordingly, advocates from the Minnesota chapter of the National Federation of the Blind, the Minneapolis Advisory Committee on Aging, and the Minneapolis Advisory Committee on People with Disabilities have all expressed opposition to the ordinance. 

    The possibility of losing ride-sharing has also created concern about the potential impact on the city’s drunk driving rates. Evidence has linked the availability of ride-sharing to lower incidents of alcohol-impaired driving and alcohol-related car accidents, underscoring just how high the stakes may be.  

    Moreover, if the city council’s move goes unchecked, deleterious minimum wage hikes will inevitably spread to other parts of the Twin Cities’ gig economy. The Minneapolis ordinance is limited to ride-share drivers for now, but if the past is prologue, food delivery drivers are next. 

    Seattle first passed a minimum wage rule for ride-share drivers in 2020, only to follow that up with this year’s food delivery minimum rate. New York City likewise followed a similar two-step trajectory of locking in minimum rates for ride-share drivers before moving on to food delivery drivers years later. Given that many ride-share drivers double as food delivery drivers—often on the same app—the progressive pressure to expand the minimum wage to delivery may be substantial. 

    Also of note, the Minnesota Legislature is considering a bill that would make it more difficult to be classified as an independent contractor in the state, creating yet more foreboding storm clouds on the horizon for gig work.

    Despite the fresh lessons from the Seattle food delivery debacle, Minneapolis council members appear oblivious to the on-the-ground reality. Ironically, it was none other than Karl Marx who famously declared that history repeats itself “first as tragedy, second as farce.” The city council—which contains several openly socialist members—should pay more heed to its intellectual forefather.

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    C. Jarrett Dieterle

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  • Business, labor groups clash on proposed changes to employee rules | Long Island Business News

    Business, labor groups clash on proposed changes to employee rules | Long Island Business News

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    Long Island business and labor groups are taking different sides on proposed changes to the classification of employees and independent contractors that could upend rules for gig workers. 

    Last month, the U.S. Department of Labor unveiled a new proposal on how workers should be classified, saying that thousands of people have been incorrectly labeled as contractors rather than employees, potentially curtailing access to benefits and protections they rightfully deserve. The department said that misclassifying workers as independent contractors denies those workers protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over businesses, and hurts the economy. 

    In a letter sent this week to Secretary of Labor Marty Walsh, the Long Island Association, the Long Island African American Chamber of Commerce and the Long Island Hispanic Chamber of Commerce, expressed their opposition to the plan. The business groups say the proposed changes will create confusion among small business owners as how to classify workers and that the revisions are “overly broad” and could also result in increased litigation and costs for small businesses. 

    “Businesses and independent contractors alike enter consultant arrangements due to many reasons, including flexibility and the need for a specialty service for a limited period,” the letter read. “The prevalence of remote work has supported small business growth by making it easier for them to find and secure specialized services from independent contractors. While we support the protection of worker rights, we urge you to examine alternative avenues to strengthen worker protection without changing the definition of an independent contractor.” 

    The proposed rule, which could take months to take effect, would replace a scrapped Trump-era standard that had lowered the bar for classifying employees as contractors, workers who are not covered by federal minimum wage laws and are not entitled to benefits including health insurance and paid sick days. 

    Labor groups are supporting the proposed rule changes. A joint statement from John Durso, president of the Long Island Federation of Labor and Ryan Stanton, LIFL’s executive director, called the DOL’s proposal fair and just. 

    “Deliberate misclassification of employees as independent contractors weakens working people’s ability to negotiate, lowers labor standards for working people, and puts good employers at an unfair disadvantage,” said the statement. “This rule ensures the United States Department of Labor has the tools to protect employees against the escalating problem of misclassification, enhances worker protections, restores benefits to working people who have been subjected to corporate work arounds, and helps to make our economy more fair and equitable.” 

    The DOL is accepting comments on the proposed rule changes through Nov. 28. 

    The Associated Press contributed to this report. 

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    David Winzelberg

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  • Physicians for Informed Consent Opposes COVID-19 Vaccine Mandate for Private and Public Employees and Independent Contractors in California

    Physicians for Informed Consent Opposes COVID-19 Vaccine Mandate for Private and Public Employees and Independent Contractors in California

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    Press Release



    updated: Mar 29, 2022

    Physicians for Informed Consent (PIC), an educational nonprofit organization focused on science and statistics, has submitted an opposition letter to California Assembly Bill 1993 (AB 1993).

    AB 1993 proposes a COVID-19 vaccine mandate for all private and public employees and independent contractors in California. Physicians for Informed Consent, representing hundreds of its physician and surgeon members, opposes the bill and asserts that AB 1993 is both unscientific and would legalize medical bullying in the workplace. Per Dr. Shira Miller, PIC founder and president, “…the clinical trials have been the only settings in which the vaccination status of subjects/patients was closely monitored, and those trials did not detect enough COVID-19 deaths to measure a significant difference in mortality between vaccinated and unvaccinated patients despite observing tens of thousands of subjects.”

    AB 1993 will be heard by the Committee on Labor & Employment members this Wednesday, March 30, 2022, at 1:30 pm. If you or someone you know lives in California, PIC urges you to read the Physicians for Informed Consent AB 1993 opposition letter, including its accompanying educational document “COVID-19 Vaccine Mandates: 20 Scientific Facts That Challenge the Assumptions” and request of your assembly members and representatives to oppose AB 1993 as soon as possible.

    Physicians for Informed Consent 
    Press Contact:
    info@picphysicians.org
    (925) 642-6651

    Source: Physicians for Informed Consent

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