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Posts Tagged ‘PRO Act’

The ABC’s of PRO | The Libertarian Institute

Posted by M. C. on June 22, 2021

California’s bill to regulate the gig economy of freelance contractors… regulate out of existence. Unless, your freelance job is protected by a powerful, well-funded Union, like the truckers union, who have received exemptions. A judge has ruled that truck drivers in California are not subject to Assembly Bill 5 (AB 5), a new gig economy law that seeks to reclassify many contractors as employees. 

https://libertarianinstitute.org/articles/the-abcs-of-pro/

by Bob Fiedler

Just when you thought our wise overlords in government couldn’t make our economic situation any worse, Joe Biden dares to dream the impossible dream, and endorses legislation to stick it to freelance contractors called: The PRO Act. This is nearly identical to the legislation California’s democratic super-majority pushed through on a State level.

I covered that bill’s causes and effects in both an article and podcast episode called “California Reaming.”

That may be helpful to watch or re-watch, to compare California’s Assembly Bill 5 (or AB5) with Biden’s current PRO act legislation.

As we all know, there’s nothing Democrats care more about than looking out for “the little guy.” It’s precisely that selfless compassion that makes them a better person than the rest of us. But their genuine belief that the important thing is to do something to feel like you are helping, instead of judging their success by a real-world assessment of this kind of legislation’s effects has already proved ruinous to California businesses. There is no reason to expect any difference on a national level, should the PRO Act pass.

In this article, I want to discuss what is known as the ABC test that has been used to apply to judicial scrutiny in places like CA where this law is in effect and is a central feature of the PRO Act as well. This will be followed by a deep dive into the Constitution’s “Contracts Clause” to discuss what this clause means and the myriad ways it relates to modern legislation like AB5 or Pro Act.

California’s bill to regulate the gig economy of freelance contractors… regulate out of existence. Unless, your freelance job is protected by a powerful, well-funded Union, like the truckers union, who have received exemptions. A judge has ruled that truck drivers in California are not subject to Assembly Bill 5 (AB 5), a new gig economy law that seeks to reclassify many contractors as employees. 

The regulations, which went into effect January 1 of 2020, were drafted in response to the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles. Filed by Los Angeles City Attorney Mike Feuer, the landmark court case established a three-pronged “ABC test” to determine if an individual is properly labeled as an employee versus a contractor.

What Is ABC Test

The PRO Act uses an identical ABC test to delineate employers and contractors and is crucial to understand. So precisely what does it entail and how does it function

  1. A contractor must control their workload,
  2. Not perform work within the business’s primary scope of operations,
  3. And be “customarily engaged” in the occupation.

This test constitutes the level of judicial scrutiny applied when a law is challenged. In this case it is done so as a matter of rational basis review. Rational basis review seeks to determine whether a law is “rationally related” to a “legitimate” government interest, whether real or hypothetical.

Companies are trying their level best to circumvent that standard, which would unravel large portions of the gig economy. 

See the rest here

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Biden’s Infrastructure Plan Would Overturn ‘Right-To-Work’ Laws in 27 States

Posted by M. C. on April 1, 2021

In his speech on Wednesday, the president called for the passage of the PRO Act, a grab bag of policies that labor unions have been pushing Congress to pass for years.

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Being Pro-union Means Being Antiworker | Mises Wire

Posted by M. C. on November 24, 2020

Union “rights” already delete workers’ freedom to associate with a different union, to choose alternative forms of group representation, such as voluntary unions, and to represent themselves in negotiations with employers. They delete workers’ freedom to associate with nonunion employers or to resolve workplace issues directly with employers, forcing arrangements exclusively through unions.

The PRO Act would exacerbate all those denials of workers’ freedom of association. It would repeal right to work laws, which twenty-seven states have to protect workers from being forced to join a union and pay union dues involuntarily. It would require employers to provide private employee information (including cell phone numbers, email addresses, and work schedules) to union organizers, violating the associational rights of those who don’t want to join or be approached by unions

https://mises.org/wire/being-pro-union-means-being-antiworker

Gary Galles

After becoming the apparent president-elect, Joe Biden clearly promised to unify Americans. However, that promise was in sharp contrast to what his campaign promises would actually achieve.

Granting unions their fondest wishes is clearly part of Biden’s labor policy, as illustrated by his statement that “I am a union man. Period” in his 2019 campaign-opening speech and his website’s opposition to the “war on organizing, collective bargaining, unions, and workers” under the current administration. And International Brotherhood of Electrical Workers (IBEW) president Lonnie Stephenson asserted a Biden administration would advance unity because it would be “a win for all working people.”

The problem is that Biden’s support for unions, particularly the Protecting the Right to Organize (PRO) Act, which is the primary means of granting their wishes, would help unions at the expense of the vast majority of American workers, a major blow to unity.

The PRO Act passed this February in the Democrat-controlled House but without Republican-controlled Senate approval. Carl Horowitz wrote that it would “dismantle virtually every existing safeguard against union monopoly in the private-sector workplace.” Eric Boehm described it, it is a “veritable grab bag of policies that labor unions have been pushing Congress to pass for years,” to further advantage unions at the expense of others’ freedom of association.

Unions already deprive many Americans of their freedom of association. As the Supreme Court found in Janus, unions inflict a “significant impingement on associational freedoms that would not be tolerated in other contexts.”

Union “rights” already delete workers’ freedom to associate with a different union, to choose alternative forms of group representation, such as voluntary unions, and to represent themselves in negotiations with employers. They delete workers’ freedom to associate with nonunion employers or to resolve workplace issues directly with employers, forcing arrangements exclusively through unions.

They delete employers’ freedom to not associate with unions or to solely employ workers who have no union involvement. In heavily unionized industries, they undermine consumers’ freedom to associate with lower cost, nonunion producers and force taxpayers to face higher-cost government services as a result of government employee unions. In each of these ways, freedom of association is applied only as a special privilege for unions and denied to others.

Further, unions violate the most basic freedom of association of many current union members. Many have never been given the right to vote on unionization, and those who might try are often kneecapped. That is because once a majority of the workers for an employer votes to certify a particular union, it becomes the monopoly negotiator for all workers. No further elections need ever be held, and attempts are strewn with roadblocks. So workers added after a union is certified need never be given a vote on the union, those who voted for it need never be given a chance to reconsider. That means no one who started work in GM’s Michigan plants since 1937 has voted to certify their union, and virtually no one who started work in government within the last half century has either, revealing that even union workers’ freedom of association is also a victim.

The PRO Act would exacerbate all those denials of workers’ freedom of association. It would repeal right to work laws, which twenty-seven states have to protect workers from being forced to join a union and pay union dues involuntarily. It would require employers to provide private employee information (including cell phone numbers, email addresses, and work schedules) to union organizers, violating the associational rights of those who don’t want to join or be approached by unions. It would allow unions to initiate snap elections in nonunion workplaces more rapidly, limiting opponents’ ability to present opposing positions. And it would codify “card check” elections, eliminating the protections against coercion provided by a secret ballot.

It would allow the National Labor Relations Board (NLRB) to invalidate a vote against unionization for virtually whatever what it decides was “employer interference.” It would require contractors and franchisees to bargain with unions, regardless of whether they have control over wages, benefits, etc., outlaw employment arbitration clauses, authorize “secondary boycotts” by unions against companies maintaining a business relationship with a target company, and more.

Far from unions benefiting all workers, advancing unity, they actually create disunity not only by constricting workplace competition, but by denying many others their freedom of association. Further, those denied that fundamental right include many union members, whose interests unions supposedly represent. And the PRO Act that Joe Biden is all in for will increase the discriminatory treatment of Americans. That is an odd way to advance our unity, regardless of the words claiming otherwise. Author:

Gary Galles

Gary M. Galles is a professor of economics at Pepperdine University. He is the author of The Apostle of Peace: The Radical Mind of Leonard Read.

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