The Department of Labor has imposed 300 pages of new regulations to reclassify many individual contractors as salaried employees.
CNBC claims this could help freelancers “recover lost wages.”
That's nonsense.
new rules will make it harder Some freelancers do it to support their families. My new video shows how it makes it harder for them to do what they want to do.
I know this because I saw what happened in California.
Four years ago, the union enlisted then-Rep. Lorena Gonzalez (D-San Diego) to push for new legislation to reclassify gig workers.
They were told they would receive higher wages, overtime pay and other benefits.
Clueless media loved it.
sound The law was called “a victory for workers everywhere.”
ha! A few months later, Vox Media laid off hundreds of freelancers.
“They expected all these companies to reclassify independent contractors as employees,” said Ari Herstand, a freelance musician. “Actually, I’m just leaving it at that!”
Herstand was disappointed to learn that he could no longer simply write checks to other musicians when they wanted to join him.
“You have to pay that drummer, you have to give him a W2, you have to get workers’ compensation insurance, unemployment insurance, payroll taxes!” He complains. “I need to hire a payroll company.”
California's anti-freelance law was supposed to protect “abused” Uber and Lyft drivers.
but many good night Independence flexibility. “I don’t want my boss telling me where and when to drive!” one person told us.
But union-funded politicians claim they know better.
Gonzalez said, “When you have to work a second job or have a third or fourth gig, that’s not flexibility, that’s feudalism!”
What followed happened is what usually happens when politicians pass bad laws. Politically connected people pay lawyers and lobbyists to secure immunity. Truck drivers are exempt from California's new law. The same was true for writers, photojournalists, graphic designers, illustrators, musicians (Herstand, etc.) and more than 100 other professions.
Uber and Lyft also received exemptions.
“Why is that a good law?” I ask. “Anyone clever enough to approach a politician is exempt.”
“It’s definitely not a solution,” Herstand admits. “That doesn’t seem like the way to legislate.”
no. But it happens.
When a reporter asked Gonzalez, “What would you say to a freelance journalist, an independent contractor, who lost their job because of your bills?”
Rep. Lee scoffed, saying, “This is not a job. It's a freelance job that allows you to work for about 3 hours a month.”
Arrogance!
people selected These jobs. Most made different choices. Unemployment rate is low.
Freelancers love the flexibility that freelance work offers.
How dare politicians declare that there are not enough such jobs for everyone?
“They are embarrassed that they made such a big mistake.” Herstand says:
“They don’t take it back,” I point out.
“No politician wants to admit that they did something wrong,” he replies.
The consequences of California's mistakes are now in.
Despite all the politically connected exemptions, freelancers still lost their jobs.
A study by the Mercatus Center found that employment fell by up to 28% in occupations where self-employment was common.
That's not because most freelancers receive benefits from working as employees. The labor participation rate also fell.
And now the U.S. Department of Labor is forcing the rest of the country to restrict freelance work, too? Insanity! This is why America has 50 states. Not all of us want to be like California!
To make matters worse, President Joe Biden wants to go further by having Congress pass a union-supporting bill called the PRO Act. Workers will be reclassified in the same way as in California, but without All exemptions!
Don’t politicians learn?
no.
Biden said he wanted to be “the most pro-union president in American history.”
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