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- Title
The Desperate Consequences of Flunking the "ABCs".
- Authors
Spandorf, Rochelle
- Abstract
Some state laws assign independent contractor status to workers in a specific industry (construction subcontractors (e.g., California), drivers (e.g., Louisiana), and licensed workers (e.g., Oregon)). The Great Resignation has particular implications for California, a hotbed for startups that depend on younger workers who comprise a material percentage of overall resignations.[22] It has spurred some employers to volunteer generous pay and employee benefits to lure workers back. Dynamex adopted the ABC test for determining if workers should be classified as employees or independent contractors for purposes of wage orders (e.g., minimum wages and other minimum worker benefits issued by California's Industrial Welfare Commission). [5] The Borello test is far narrower in scope (meaning that it classifies fewer workers as employees) than California's new Labor Code Section 2775, which completely rewrites California worker status rules. Among the more interesting findings: (1) "gig" workers represented less than two percent of all independent contracting in 2016 despite all of the attention they receive from politicians; (2) workers who relied exclusively on independent contracting for their income tended to be older, married, and lived in lower-income households and had low earnings on average compared to W-2 workers; and (3) only nineteen percent of hiring firms issued their contractors 1099 forms, which limited researchers' analysis.
- Subjects
GIG economy; LABOR contracts; EMPLOYEE rights; UNITED States economy; HEALTH insurance subsidies; BUSINESS networks; BUSINESS models; LABOR laws
- Publication
Franchise Law Journal, 2022, Vol 41, Issue 4, p439
- ISSN
8756-7962
- Publication type
Article