Posts Tagged ‘workplace’

NLRB: we’re coming after franchisors and subcontractors

In a long-feared ruling, the Obama National Labor Relations Board has ruled that a company that employs subcontractors or engages in franchising can over a wide range of situations be deemed a “joint employer” for purposes of liability for labor law violations and obligation to bargain over wages and working conditions with subcontractors’ or franchisees’ work forces. The decision imperils many of the most successful business models on the American economic scene. I’ve got a write-up at Cato observing that the ruling is likely to wreak havoc with, among many other sector, Silicon Valley and sharing-economy launches and asking “One wonders whether many of the smart New Economy people who bought into the Obama administration’s promises really knew what they were buying.”

More coverage of the NLRB’s Browning-Ferris ruling: Reuters (quotes me on the not-bright prospects for Hill action); Seyfarth Shaw; “Good week to change name of NLRB to National Labor Resuscitation Board.” [Jonathan Segal] And, from standpoints supportive of the ruling, Al-Jazeera and Prof. Catherine Fisk/On Labor.

Labor and employment roundup

  • “The employees ran away and refused to talk to us…Even if we’re there to help them.” [NYT cheers New York nail salon raids, earlier on paper’s crusade against the salons]
  • And now, the Times’s campaign to damn the Amazon: “The Liberty To Work Under Tough Bosses” [John McGinnis]
  • Rule by White House decree begins to rile its employer targets: “Defense Contractors to Obama: Enough With the Executive Orders” [Defense One]
  • “Lawsuit Reform Alliance Estimates $200m in Additional Costs for LaGuardia Airport Project Due to the ‘Scaffold Law'” [its press release, earlier on law]
  • “Mandated Paid Maternity Leave: A Bad Idea for Women” [Abigail Hall, Independent Institute via Alkon, related Peter Suderman on family leave mandates]
  • Describing most public assistance programs to working families as subsidy for low-wage employers is “flatly wrong.” [Gary Burtless, Brookings, earlier on such claims, more from Tim Worstall (“McDonald’s Profits Are Not Subsidized By Welfare Payments To McDonald’s Employees”)]
  • Wisconsin-style “Moral Monday” protests against North Carolina’s GOP administration have some familiar backing [News and Observer, more on phenomenon from John Locke Foundation]

Thank goodness this sort of thing doesn’t happen in politics or the media

“The Securities and Exchange Commission today announced that BNY Mellon has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund.” [SEC press release, WSJ] The SEC said at least three offspring from influential families lacked “the requisite academic or professional credentials” for the internships and proved to be “less than exemplary employees.” [Business Insider] While publicly shaming the bank, the commission did not see fit to name the foreign country involved. Similar probes on intern hiring have been aimed at other big financial institutions including J.P. Morgan, accused of hiring the children of Chinese officials [Reuters]

Obama unveils overtime regs

“Well, they did it. The Obama Administration has proposed a new rule that everyone has to punch a time clock unless they are paid at least $921 a week. … This is a law written by salaried professionals telling younger and lower-paid workers that they have no right to be … salaried professionals.” [Coyote, who also has a few words on the arbitrariness of the Department of Labor’s threshold calculations, and on how DoL implicitly realizes that employers will adjust payroll practice to employees’ detriment, the biggest losers being upwardly mobile strivers.] Short-term benefits for some workers will melt away as employers redesign jobs to avoid overtime, reduce base pay, or lay off staff [Jeffrey Miron, Cato] “Unfortunately, it appears that the White House has given up on economic growth” [Douglas Holtz-Eakin] More: Iain Murray, National Review; Marianne Levine, Politico; W$J; Doug Hass/Wage Hour Insights; Detroit News editorial. My two cents earlier here and generally here.

Obama’s regulatory push

HeritageRegulationTiming

[Image: Heritage Foundation]

James Gattuso and Diane Katz at Heritage tote up some of the numbers on the Obama administration’s wave of regulation:

In its first six years, the Obama Administration imposed 184 major regulations on the private sector. That figure is more than twice the number imposed by the Bush Administration in its first six years….

Overall, the cost of new mandates and restrictions imposed by the Obama Administration now totals $78.9 billion annually. This is more than double the $30.7 billion in annual costs imposed at the same point in the George W. Bush Administration.

Much, much more is ahead, especially in areas like labor and employment, where the administration is pursuing a frankly unilateral course of legal changes that would never meet with approval if submitted as legislation to the present Congress.

Paid leave laws often backfire

Laws prescribing maternal and child care leave and benefits often backfire on their intended beneficiaries, reducing employer willingness to hire workers expected to take the benefits. That’s not exactly news to those familiar with the economic way of thinking; what’s noteworthy is that it’s something being reported in the New York Times, which cites a law in Spain that entitles parents to ask for reduced hours and has led to a reduced willingness to employ mothers, and a child-care mandate in Chile that has been followed by a decline in starting wages for women, as well as much noncompliance. “A broader analysis of 22 countries found that women were more likely to work when these types of policies are in place, but their jobs more likely to be ‘dead-end’ positions and less likely to be managerial posts.” America’s own Family and Medical Leave Act, often thought to be less burdensome because leave is unpaid, has not been exempt from the logic: “Women are slightly more likely to stay employed, but receive fewer promotions because of the law, according to research cited by the New York Times.” The Times says the “three American states — California, New Jersey and Rhode Island — that offer paid family leave finance it through employee payroll taxes,” which tends to make it a little more explicit that the cost of the benefits is coming largely out of compensation packages. [Nicole Kaeding, Cato; Claire Cain Miller, “The Upshot,” New York Times]

Labor and employment roundup

  • Loosen constraints on local and state deviation from the NLRA labor law model? Idea gathering force on right also draws some interest from left [Ben Sachs, On Labor, on James Sherk/Andrew Kloster proposal for right to work laws at city/county level]
  • Justice Alito dissents from Supreme Court’s denial of certiorari in Kalamazoo “employee buyer’s regret” case where asked-for transfer was later construed as retaliation [Jon Hyman]
  • NLRB’s franchise power grab could prove costly to small business [Diana Furchtgott-Roth, Connor Wolf]
  • A very different country: Supreme Court of Canada constitutionalizes a right of public employees to strike [On Labor]
  • Average full-time California municipal employee got 2013 compensation package of nearly $121,000 [Steven Greenhut]
  • Perfect, now let’s mandate sick day banking nationwide: “Montgomery [County] fire department has history of sick-day abuse among workers due to retire” [Washington Post]
  • Yet more unilateralism: Obama administration tightens regs on federal contractor sex discrimination [Roger Clegg]

Labor and employment roundup

  • Jury convicts Ironworkers Local 401 boss in union violence case [Philadelphia Inquirer, CBS Philly, earlier here, etc. on Quaker meetinghouse arson and other crimes] Pennsylvania lawmaker proposes to end unions’ exemption from laws defining crimes of harassment, stalking, threatening [York Dispatch; more on exemption of unions from these laws]
  • Emergent regime under federal law: if you’ve ever offered light duty to a disabled worker or returning injured worker, you’d better offer it to pregnant worker too [Jon Hyman]
  • Everything you know about company towns is wrong [Alex Tabarrok]
  • “The EEOC issues you’ll want to keep an eye on in 2015″ [Littler Mendelson via Tim Gould, HR Morning]
  • Sued if you do: employers struggle to navigate between government rules encouraging, penalizing hiring of applicants with criminal records [WSJ, paywall] “Watch Your Back: The Growing Threat of FCRA Background Check Class Actions” [Gregory Snell, Foley & Lardner]
  • “Nearly 30 Percent of Workers in the U.S. Need a License to Perform Their Job: It Is Time to Examine Occupational Licensing Practices” [Melissa S. Kearney, Brad Hershbein and David Boddy, Brookings via John Cochrane]
  • “The Effect of Mandatory Sick Leave Policies: Reviewing the Evidence” [Max Nelsen] “Popularity of Obama’s paid sick leave proposal depends on workers not realizing it ultimately comes out of their paychecks.” [James Sherk]