Posts tagged as:

occupational licensure

  • Operator of Jimmy John’s sandwich shops asked low-level employees to sign a noncompete. What would be the point? [Bainbridge, Hyman]
  • GOP Congress might take aim at a range of current union and NLRB practices including political dues spending without member opt-out [Sean Higgins, Washington Examiner]
  • Reminder: turning union activity into a protected category under the Civil Rights Act is one of the very worst ideas around [George Leef, earlier on Ellison-Lewis proposal here and here]
  • Scrutiny of occupational licensure intensifies [Ira Stoll]
  • “House Committee Examines EEOC Transparency and Accountability Legislation” [On Labor]
  • “The Dawn of ‘Micro-Unions': A Scary Proposition for Employers” [John G. Kruchko, Kevin B. McCoy, Ford Harrison, earlier here, etc.]
  • Immigrant status and national origin discrimination: “DOJ Brings Issue of Hiring Documentation to Forefront” [Daniel Schwartz]

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Lawyers vs. their competition

by Walter Olson on September 23, 2014

Organized lawyerdom is gung-ho for stringent enforcement of UPL (unauthorized practice of law) laws — their own version of occupational licensure — but consumers fare less well when paralegals, automated forms providers, accountants and others are kept from offering competitive services [George Leef, Forbes] As I’ve argued before, part of the key to sorting out the UPL issue is to distinguish between lawyerly capacities which involve the power to wield compulsion or force against others — the capacity to initiate litigation being paramount among these — and less coercive capacities such as the performing of research and giving of client advice.

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If you hire some consenting but unlicensed neighbor for a not-very-big repair or construction job in California, there’s now a greater chance he or she will be headed for jail, no matter how happy you may be with the quality of the work. Gov. Jerry Brown has signed S.B. 315 (text, progress, promotional fact sheet), described by its sponsor, Sen. Ted Lieu (D-Beverly Hills), as a measure “to help curb California’s underground economy.” The measure would step up penalties and enforcement against persons who advertise for, or perform, repair and construction work with a value of $500 or more, counting parts and material as well as labor. (By its terms, the bill appears to apply to someone who offers to do a $500 job for your office that consists of procuring a $400 item and adding $100 for the labor of installing it.) First offenses are subject to six months in jail and a $5,000 fine, and subsequent offenses are treated yet more harshly.

There’s more. The bill, according to its legislative summary, “would additionally require that the enforcement division, when participating in the activities of the Joint Enforcement Strike Force on the Underground Economy, be granted free access to all places of labor,” at least in business locations. (Yes, “all”; you only thought your property was private.) And although the literature on the bill refers repeatedly to the need to curb “cheating” contractors, the penalties apply no matter how satisfied you may be with the contractor’s work.

That’s because protecting customers isn’t actually the point. Such is the political grip of occupational licensure lobbies that the bill passed unanimously in both houses of the California legislature with support from licensed repair and construction contractors. Lieu: “Groups supporting SB 315 are: Contractors State License Board (sponsor); Air Conditioning and Refrigeration Contractors Association; Air Conditioning Sheet Metal Association; American Subcontractors Association, California Inc.; California Chapters of the National Electrical Contractors Association; California Landscape Contractors Association; California Legislative Conference of the Plumbing, Heating and Piping Industry; California Professional Association of Specialty Contractors; United Contractors.”

In short, this is the sort of thing the California legislature does when it wants to think of itself as pro-business: it extends criminal liability for doing business in any other than the authorized way.

More: I’ve got some further thoughts at Cato at Liberty: “The costs of occupational licensure are many. Not least is that it gives established businesses a stake in making government more powerful and invasive.” And am I the only one who interprets the bill as aimed at Craigslist and at sharing-economy interfaces that match odd jobs with persons willing to do them, even if it is not announced as such? More on the law from Steven Greenhut (who was on the story before I was).

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Is the American job market becoming less fluid, as a new paper by Steven Davis and John Haltiwanger argues, with less job-switching and fewer vacancies opening up at established employers? And to the extent this is an unwelcome trend, which policies might be contributing to it? [The Economist; some possibly contrary data points from Alex Tabarrok]

Free speech roundup

by Walter Olson on September 3, 2014

  • Lawprofs vs. speech: new book by Prof. Danielle Citron (U. of Maryland) urges stepped-up legal penalties for online expression as “harassment” ["Hate Crimes in Cyberspace," Harvard University Press]
  • European high court’s Google-unindexing folly: “The truth is, you’ve never had the ‘right to be forgotten'” [Jack Shafer; example, WSJ]
  • Feds’ National Science Foundation spending nearly $1 million to create online database monitoring “suspicious memes”, “false and misleading ideas” on Twitter [Free Beacon]
  • Flap over fantasy-art DMCA takedown demand seems to be over, but we can still enjoy Ken’s take [Popehat] More Popehat highlights: 7th Circuit affirms sanctions vs. Team Prenda of copyright troll fame; multi-level marketer threatens blogger; controversial doctor resorts “to threats and legal analysis that are at least as innovative as his cancer theories“; “In 2014, minimal legal competence requires an attorney to anticipate and understand the Streisand Effect“;
  • When occupational licensure laws stifle speech [Dana Berliner (IJ), NYT Room for Debate]
  • Inside a deposition in the Shirley Sherrod defamation lawsuit [J. Christian Adams, earlier here, etc.] Write if you dare about Michael Mann, just hope he doesn’t sue you over it [Trevor Burrus, earlier here, etc.]
  • U.S. Civil Rights Commission member Michael Yaki argues for campus speech codes [Hans Bader, Eugene Volokh] Per EEOC: “Illegal ‘hostile work environment’ harassment for co-workers to wear Confederate flag T-shirts” [Volokh; also]

Cato podcast, description follows:

Occupational licensing boards demand that hair braiders either spend thousands of dollars and hours to become cosmetologists or be put out of business. Paul Avelar with the Institute for Justice is challenging those requirements.

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  • “Telling Employee He Is ‘Eligible’ For Bonus Not Enough to Create Contractual Obligation” [Chris Parkin/Daniel Schwartz; Connecticut appeals court]
  • Richard Epstein on Obama’s anti-LGBT-discrimination edict for federal contractors [Hoover "Defining Ideas"]
  • D.C. Circuit panel, Janice Rogers Brown writing, strikes down DC tour guide licensing scheme [Ilya Shapiro/Cato, WaPo, Orin Kerr]
  • “Why Progressives Shouldn’t Support Public Workers Unions” [Dmitri Mehlhorn/Daily Beast]
  • “James Sherk of Heritage on Members-Only Bargaining” [On Labor]
  • As discrimination law gradually swallows all else: “Rep. Keith Ellison wants to make union organizing a civil right” [MSNBC]
  • NY Senate committee gives approval to “workplace bullying” law. On thin constitutional ice? [Hans Bader/CEI, earlier]

Medical roundup

by Walter Olson on July 9, 2014

  • Congress responds to Veterans Administration health care scandal by throwing huge new sums at care [Nicole Kaeding, Chris Edwards, Cato] “Every Senior V.A. Executive Was Rated ‘Fully Successful’ or Better Over 4 Years.” [NYT via Instapundit] “VA Hospitals aren’t included on the federal government’s Hospital Compare web site” [White Coat]
  • Canadian judge quashes as vexatious suit over non-admission to medical school [Winnipeg Free Press]
  • Brain-damaged child cases: “14.5 Million Reasons Physicians Practice Defensive Medicine” [White Coat, Cleveland] “North Carolina Jury Deadlocks in John Edwards’ Malpractice Trial Against Doctor” [Insurance Journal, emergency medicine]
  • “Medical Licensing in the States: Some Room for Agreement — and Reform” [Charles Hughes, Cato]
  • “NY Launches Statewide Med Mal Settlement Program” [NYDN via TortsProf]
  • “Unlucky Strike: Private Health and the Science, Law and Politics of Smoking” [John Steddon and David Boaz, Cato program] Here’s the long-awaited segue to complete prohibition: British Medical Association recommends banning tobacco permanently for persons born after 2000 [WaPo]
  • Sneaky: California ballot language undoing MICRA liability limits “buried in an initiative titled The Troy and Alana Pack Patient Safety Act of 2014.” [Yul Ejnes, KevinMD]

July 3 roundup

by Walter Olson on July 3, 2014

  • As Brooklyn changes, so do its juries: “more sophisticated people… they don’t believe [plaintiffs] should be awarded millions of dollars for nothing.” [NY Post quoting plaintiff's lawyer Charen Kim]
  • Richard Epstein: Massachusetts buffer zone statute “should have been upheld, not struck down” [Hoover Institution, earlier on McCullen v. Coakley, my related comment]
  • “Runners” as in client-chasing for injury work: “Arkansas AG Files Suit Against Chiropractic ‘Runners'” [AP]
  • Fox, henhouse: 2012 law says local transit agencies must sit on boards helping set their own funding [Randal O'Toole, Cato]
  • No-good, terrible, really bad idea: occupational licensure for software professionals [Ira Stoll]
  • More proliferation of legally required video surveillance [Volokh; guns, cellphone sales]
  • How do you expect the IRS to back up headquarters emails when we throttle its IT budget down to a mere $2.4 billion? [Chris Edwards, Cato]

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“The right and left agree — too many occupations are overregulated” [Morris Kleiner, New York Times via Peter Van Doren, Cato; Arnold Kling]

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  • If you imagine the primary goal of occupational licensure is to protect consumers, think again [Donald Boudreaux, Ramesh Ponnuru]
  • “U.S. Civil Rights Commissioners Take EEOC to Task on Background Checks” [Nick Fishman, Employee Screen; Seyfarth Shaw]
  • Pennsylvania lawmakers consider ending union exemption from stalking laws; Illinois, Nevada and California also shelter them from liability [Washington Examiner]
  • “How Disruptive Can an Aggressive NLRB Be in a Non-Union Setting? More Than You Might Think” [Michael Fox]
  • “A call for the DOL to fix what is wrong with our wage-and-hour laws” [Jon Hyman]
  • Restaurant Opportunities Center, known for staging employee protests, bars own employees from same privilege [Florida Watchdog via Sean Higgins]
  • Conference honoring assassinated professor Marco Biagi showcases classical liberal labor law scholarship (or so one would hope) [my comment at Workplace Prof, related call for papers, earlier]

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Medical roundup

by Walter Olson on March 14, 2014

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Coyote advances a geographically based hypothesis. Since occupational licensure is found in ethnically uniform nations, it can hardly owe its origins exclusively to this sort of tension. In the common American pattern, however, where one ethnic group dominates a given trade or occupation for a time and then gives way to or is challenged by a newer ethnic group, it may be easier to assemble political coalitions that slow down the advance of the newcomers. Milton Friedman’s famous chapter on occupational licensure from Capitalism and Freedom is here.

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February 20 roundup

by Walter Olson on February 20, 2014

  • “Woman Arrested Nine Years After Failing to Return Rented Video” [S.C.: Lowering the Bar, more]
  • “Why India’s Ban Against Child Labor Increased Child Labor” [James Schneider, EconLib]
  • “I’ve never seen an attorney general sanctioned.” Court hits Nevada AG Catherine Cortez Masto with sanctions after collapse of robosigning suit against mortgage servicer that state hired D.C.’s Cohen Milstein to bring [Daniel Fisher, update (case settles)]
  • Another review of the new collection The American Illness: Essays on the Rule of Law (Frank Buckley, ed.) [Bainbridge, earlier]
  • They would be major: “The Gains from Getting Rid of ‘Run Amok’ Occupational Licensing” [David Henderson]
  • E-cigarettes could save lives [Sally Satel, Washington Post]
  • How incentives to avoid tax can lead to social tragedy, in this case via ABBA stage outfits [Guardian]

It’s a win for small tax return preparers and a loss both for unilateral assertions of agency power (Congress had never given the Internal Revenue Service the power it claimed here) and for big national tax-prep chains, which had supported the regulation with a view to suppressing “kitchen table” competitors. Andrew Grossman analyzes for Cato, and the Institute for Justice, representing independent tax preparers, can take due credit for a big legal win.

More: H & R Block’s CEO — of course! — is unhappy. And John Steele Gordon explains the role of the Horse Act of 1884.

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