Posts Tagged ‘wage and hour suits’

Gig/freelancer economy roundup

In an emergency that has made trucking, logistics, and home delivery uniquely important, fractured the schedules of countless parents and caregivers, and sent the services sector reeling, it would be nice if California and other states were not making war on the work arrangements needed for the situation. That’s why California’s AB5 fiasco (earlier here, here) along with similar moves in New Jersey and elsewhere, come at the worst time.

P.S. Related Cato post now up. Truckers especially have many more problems than this right this moment responding to the COVID-19 pandemic outbreak, read about some of them here (and help if you can!) They have begun getting direly needed removals of regulations. But don’t let this one slip off the list.

Wage and hour roundup

Gig/freelancer economy roundup

More on the chaotic, destructive effects of California’s AB5 (earlier here, here, etc.):

U.S. Department of Labor steps back on joint-employer rule

The U.S. Department of Labor has proposed a final rule stepping back from the Obama administration’s damaging effort to stretch the definition of “joint employer” so as to tag companies with liability over the employment actions of many franchisees, subcontractors and even suppliers. “The new rule beats a retreat from the past administration’s aim ‘to force much more of the economy into the mold of large-payroll, unionized employers, a system for which the 1950s are often (wrongly) idealized.’ That very same goal is at the root of California’s unfolding debacle with AB5, a law that tries to force many lines of freelancing into a direct-employment model and is already harming large numbers of workers it had purported to help.” I explain in a new Cato post.

AB5: California’s much-predicted freelancer disaster

“California’s new employment law has boomeranged and is starting to crush freelancers” [Elaine Pofeldt, CNBC; Kerry Flynn, CNN Business] “As with many of my colleagues today, because I live in California, I was just told that I can no longer hold a paid position with SB Nation.” [Rebecca Lawson, Mavs Moneyball; Whitson Gordon thread on Twitter] “Separately, there’s some bit of irony in the fact that just a few months ago, Vox itself had a headline celebrating AB5 calling it a ‘victory for workers everywhere.’ Except, I guess, the freelancers who worked for Vox.” [Mike Masnick, Techdirt] “These were never good jobs,” claims the measure’s sponsor, Assemblywoman Lorena Gonzalez (D-San Diego), but lots of freelancers have made clear they disagree [Billy Binion] “Mainstream politicians and pundits love to cite ‘unintended consequences’ when their preferred policies cause harm in the exact ways libertarians said they would.” [Elizabeth Nolan Brown, earlier]

More: impacts on music, theater, and the performing arts make AB5 a creative-unfriendly law [Joshua Kosman and Carolyn Said, San Francisco Chronicle]

Wage and hour roundup

  • “Bernie Sanders and Bad Justifications for Minimum Wage Hikes” [Cato Daily Podcast with Ryan Bourne and Caleb Brown]
  • Oregon senator wants to give CEOs a pay incentive to automate, contract out, or otherwise eliminate low-compensation jobs faster than they would otherwise [Hans Bader]
  • “Mayor Pete Wants To Destroy the Gig Economy in Order To Save It” [Nick Gillespie on Buttigieg plan to limit independent contractor status] More on California independent contractor battles [Federalist Society podcast with Bruce Sarchet, earlier here, etc.]
  • Not many states do this: “New York State Passes Bill Allowing Employees to Place a Lien on Employer’s Property For Accusation of Wage Violations” [Employers Association Forum]
  • With hand-made tortillas no longer economic, the Upper West Side restaurant began going downhill [Jennifer Gould Keil, New York Post]
  • The myth of stagnant real wages [Scott Sumner]

Wage and hour roundup

  • After Target, under pressure from activists, announced a $15 companywide minimum wage, “workers say they’ve had their hours cut and lost other benefits, such as health insurance.” [Eric Boehm, Reason]
  • New Chicago scheduling ordinance is “the ultimate intrusion of government in the workplace.” [Chicago Tribune editorial; Allen Smith, SHRM; Fisher Phillips]
  • “As predicted, the $15 wage is killing jobs all across the city” [New York Post editorial; Billy Binion, Reason; Michael Saltsman and Samantha Summers, Crain’s New York letter (defenders of hike playing fast and loose with numbers) ]
  • The Federalist Society held a teleforum with Tammy McCutchen of Littler Mendelson on the lower courts’ reception of the Supreme Court’s decision one year ago in Encino Motorcars on FLSA interpretation [earlier]
  • By next year I expect Left Twitter to be asserting in the alternative that this famous Seattle restaurant 1) never existed, 2) remains open and has no plans to close, and 3) was sunk by issues unrelated to the minimum wage. [Jason Rantz, KTTH (Sitka & Spruce)] More on restaurants: Legal Insurrection (closure of West Coast chain); Tyler Cowen (NBER working paper on what kinds of restaurants are most likely to be affected);
  • “In the past five years, nearly two-thirds of companies have faced at least one labor and employment class action and, overwhelmingly, companies report that wage and hour matters are their top concern in this category.” [Insurance Journal, Carlton Fields Class Action Survey]

California vs. freelance writers

A new California anti-gig-economy law sponsored by a labor-organizer-turned-lawmaker is shaping up as a disaster for freelancers — exactly as Virginia Postrel and others predicted it would. “If a freelance journalist writes for a magazine, newspaper or other entity whose central mission is to disseminate the news, the law says, that journalist is capped at writing 35 ‘submissions’ per year per ‘putative employer.'” The law is set to go into effect January 1. [Hollywood Reporter; earlier here, here, etc.]

California moves to throttle the gig economy

If driving for a gig economy platform appealed to you because you could wrap the timing of the work around the other obligations in your life, the California legislature sends its sincerest condolences [Megan McArdle, Washington Post/Paducah Sun; Michael Munger, The Hill, Steven Greenhut in July; earlier here, etc.] More: Richard Epstein, Hoover.

“Time cards for adjuncts?”

Legislation in the California assembly aims at heading off the prospect that private colleges and universities will require adjunct professors to begin operating on time card systems:

In recent years, a number of colleges and universities have settled faculty overtime violation lawsuits filed by the same California law firm — lawsuits that even many adjuncts say are frivolous. Stanford University, for example, last year settled for nearly $900,000 in a class-action suit regarding instructors in its continuing studies program. Attorney’s fees accounted for one-third of the settlement, so adjuncts involved were each entitled to a partially taxable $1,417. Kaplan University also settled, according to public documents. Other suits have been settled more quietly. Public institutions in California, whose adjuncts are generally unionized, have not been affected.

Private colleges and universities have responded to the ongoing legal threat by either making or planning to make their adjuncts document all of their working hours on time cards.

Tinker with its details as one will, wage and hour law necessarily proceeds on the premise of regimenting the workplace by the minute. That’s why the time clock is its symbol. [Colleen Flaherty, Inside Higher Ed]