Another govt overreach by Mush brain that impacts the gig economy.

[raleighherdfan]

another mush brain screw up incoming.

Americans continue to feel the blow of yearslong high inflation and a post-COVID economy. And Biden’s policies have made that situation worse, despite his best attempts to convince you otherwise.

Take his latest idea.

Biden began the year with a new Department of Labor rule that will undermine the gig economy that independent contractors and freelancers rely on to support themselves and their families. More than 70 million Americans enjoy this kind of work, according to the American Action Forum, a center-right policy institute.

The Biden regulation raises the bar sharply for companies to be able to treat workers as independent contractors rather than employees.

The rule, which takes effect in March, is so sweeping that the full impact isn’t yet known. But what is a sure thing is that it will limit the freedom of workers who enjoy the flexibility of not being a full-time employee, as well as force employers to reduce their workforce.

 

[Raoul Duke MU]

A curious opinion piece. I'm asking myself why the author does not quote provisions of the regulation that are bad, as I genuinely would like to know. Then again, knowing who this author is, I'm not surprised.

 

[Marshall Jeff]

Another dumb example of the government thinking they can collect more tax money. There are so many different ways like this already not working.

 

[HerdandHokies]

This is an even handed description of the change.

Employee or Independent Contractor? U.S. Department of Labor Changes the Standard | JD Supra

On January 10, 2024, the U.S. Department of Labor (DOL) published its Final Rule on the standard for determining who is an employee or independent...

www.jdsupra.com

In a nutshell, there are 6 things they’ll look at in determining if someone is an independent contractor. Is the person their own boss? Are they buying their own equipment? Is the work permanent and exclusive? Does the employer determine the prices that are paid to the worker? Is the work being done an integral part of the employer’s business? Is the worker using specialized skills?

So let’s look at three examples. The first is a machinist hired to install a platform in a chocolate factory. The machinist is his own boss. He is using his own equipment on the install. The work is not permanent; it is over when he finishes the install, and he can go install platforms anywhere else he wants. The machinist is setting the price; the company can take it or leave it (or negotiate.) Building platforms is not an integral part of a chocolate factory’s business. And the machinist is using specialized skills. The employee is obviously an independent contractor.

The second is a person mixing chocolate at the factory. They are directly supervised by someone. They are not using their own equipment. The work is permanent and since they have to work full shifts they’re unlikely to be able to work for anyone else. The employer is deciding the wages. Making chocolate is the factory’s job. The worker may be using specialized skills but they are likely skills they learned at the factory. They’re obviously an employee.

Finally an Uber driver. Whether or not they are their own boss is blurry, as per my understanding the Uber company will evaluate their performance via algorithms and assign (or not) work accordingly. Most drivers are buying their own equipment, but I have seen set ups where the ride share company (cannot remember if it was specifically Uber) was basically renting them the car, in which case they aren’t. The work is permanent in that there is no set end date, but it isn’t to my knowledge exclusive (most Uber drivers I’ve seen also drive for Lyft for example.) The employer is determining what the driver gets paid. Is driving people around an integral part of Uber‘s business? They would say no; they’re an app development company. Most people would say yes. The worker isn’t really using specialized skills.

It’s much blurrier if an Uber driver is an employee or independent contractor. I think their main problem is going to be that Uber is setting the rates. I think they’ll have way fewer problems if they’ll let all the active drivers out there set in the app the rate they are willing to drive for, then Uber adds whatever profit they’re making on top of that when they charge the customer.

 

[raleighherdfan]

Let not over analyze this. This is another Butt Trumper move that gives a political payback to the groups that dislike the gig economy the most....UNIONS. Under Trump Admin rule....it wasn't "blurry" at all. Most Uber drivers I talk with when riding love the arrangement they have with the company, the freedom to work when they want, and apparently the fares they earn, based on when they choose to drive, allow a decent profit to them.

The Final Rule rescinds the Trump administration’s independent contractor rule from 2021, which took a “core factors” approach to the analysis, giving heaviest weight to the factors of “the nature and degree of the individual’s control over the work” and “the individual’s opportunity for profit or loss.” Generally, the 2021 independent contractor rule was viewed as making it easier to classify workers as independent contractors.

 

[HerdandHokies]

Apologies for posting a summary of the law in question along with some potential applications instead of copying and pasting an Ingrid Jacques “think”piece.

 

[extragreen]

All time record high real personal disposable income.
Most manufacturing jobs during the last 15 years
Record high real GDP
Wall Street neared a record high 1/10/24
23 consecutive months of UE rate below 4%.
14+ million jobs created. All time U.S. record.

New HHS Report Shows National Uninsured Rate Reached All-Time Low in 2023 After Record-Breaking ACA Enrollment Period​

 

[johns1124]

"Women especially benefit from this type of work as it allows them to better balance their professional and personal lives, says Patrice Onwuka, the director of the Center for Economic Opportunity at the Independent Women's Forum."

Pimps are going to have to start paying their fair share of taxes!

 

[raleighherdfan]

Apologies for posting a summary of the law in question along with some potential applications instead of copying and pasting an Ingrid Jacques “think”piece.

No reason to apologize. It was an opinion article. That's how opinion articles work. Apologies your vag gets raw when you read an opinion that doesn't align with yours.

I'm still reading your link beyond what I already copy and pasted in my 2nd response. What made the rule under Trump "blurry" to you? His ruling, as I stated, was pretty straight forward, no? What was the urgent necessity for the sudden change? What potential "applications" under the new rule help the gig worker and the company? Which "applications" make it more difficult to operate? Please...."Think" away for us.

 

[HerdandHokies]

I didn’t call the status of Uber under the Trump law blurry, I called Uber’s status under the new law blurry. And frankly if they make one change (allowing the drivers to set the rate they’ll drive at) it reads to me like they’re probably going to be fine with the new law.

I think the new law is too complex and open to interpretation. I like California’s ABC test better as it is simpler, and I think for the most part it really doesn’t go as far as the new federal rule does.

ABC Test | LWDA

www.labor.ca.gov

 

[raleighherdfan]

And frankly if they make one change (allowing the drivers to set the rate they’ll drive at)

IMO, thats one of the advantages of the "gig" worker (uber/lyft) economy. A driver doesn't have to try and figure fares/rates out. The algo adjusts the rates based on supply demand and automatically calculates into the application. Leave it to govt to f**k something up that works conveniently.

 

[Rock98Dog]

This is the law from California that proved a monumental disaster. The woman in charge of this failed her Senate confirmation and was snuck into the department of labor anyway. Just research the impact of California AB5 on the state.

 

[HerdandHokies]

This is the law from California that proved a monumental disaster. The woman in charge of this failed her Senate confirmation and was snuck into the department of labor anyway. Just research the impact of California AB5 on the state.

It’s not that law and it’s not particularly similar to that law. We’d have been better off with the California law (under which, by the way, Uber drivers are still independent contractors)