The misclassification of employees as independent contractors has been the focus of recent attention as a result of the implementation of that employment model by ride-share and other gig employers. But the practice long predates the emergence of the gig economy, particularly in the construction industry. This article traces the history of misclassification in construction and the subsequent emergence of a cash-based underground system of compensation, which have lowered standards and been among the major causes of the decline of union density in the industry. In addition, the author examines the regulatory environment at the federal level, which has largely enabled misclassification as well as attempts by state agencies to adopt more aggressive enforcement policies. Downloand Article
The new consensus in the antitrust establishment that a tougher approach is needed sets the stage for Biden to take a harder line than Obama did, said Michael Kades, the director of markets and competition policy at the left-leaning Washington Center for Equitable Growth and a former lawyer at the Federal Trade Commission.
“The question isn’t whether a Biden administration will be more aggressive, but how much more aggressive,” said Kades.
Joel Rosenblatt, Robert Wilkens-Iafolla and Erin Mulvane Bloomberg
Uber and Lyft on Tuesday fended off labor protections that were decades in the making, allowing the companies to keep compensating their drivers as independent contractors. While Proposition 22 requires these app-based transportation services to offer some modest new perks for drivers, it keeps them from having to provide benefits that full-time employees get.
In a major win for gig economy companies, CNN projects California voters have passed a costly and controversial ballot measure to exempt firms like Uber and Lyft from having to classify their gig workers in the state as employees rather than as independent contractors.
Terri Gerstein of the Harvard Labor and Worklife Program and Economic Policy Institute said in an email to CNN Business that the result will "leave thousands of California workers in a precarious and perilous position, without basic rights...
Uber Technologies Inc. and Lyft Inc. jumped in U.S. premarket trading Wednesday after California voters approved a measure (Proposition 22) to protect the companies’ business models from efforts to reclassify their drivers in the state as employees.
“This could be seen as a shot across the bow,” said Sharon Block, executive director of the Labor and Worklife Program at Harvard Law School. “Everybody’s looking at California.”Under the new law, gig companies have agreed to provide some new protections to California workers, including a guaranteed wage for time spent driving and a health insurance stipend, but does not include paid sick leave, unemployment insurance and other standard protections afforded under California labor laws.... Read more about Uber, Lyft Shares Jump as Companies Win Vote Over Drivers
Scalia’s primary objective as U.S. Labor Secretary has been to solidify an enforcement philosophy at DOL that’s predictable for employers. Businesses had railed against the Obama administration for what they viewed as its overly punitive, “gotcha"-style tactics. Their frustration mounted when President Donald Trump‘s first labor secretary, Alexander Acosta, was slow to rebalance the enforcement landscape.
Opponents say Scalia has failed to leverage the department’s enforcement functions to defend workers at a time when their lives and...