Jon Weinberg is a student at Harvard Law School.
Congress may be open to revisiting the classification of gig economy workers as employees or independent contractors under the Fair Labor Standards Act. Per Bloomberg BNA, “the head of the House workforce committee May 3 told an audience of innovators that she would be open to updating the Great Depression-era Fair Labor Standards Act to better serve the on-demand workforce.” Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.) likened classifying gig economy workers as “trying to fit a square peg in a round hole.” Rep. Foxx made the comments at Consumer Technology Association’s New American Jobs Summit. Workforce Protections subcommittee ranking Democrat Rep. Mark Takano (Calif.) responded to Bloomberg BNA with concern, stating “When she talks about updating the laws, what I hear her say is we need to throw out protections instead of how these workers can get a fair deal.”
New data shows that the U.S. unemployment rate is near a record low – but productivity is dropping. Reuters reports that “U.S. job growth rebounded sharply in April and the unemployment rate dropped to a near 10-year low of 4.4 percent, signs of a tightening labor market that could seal the case for an interest rate increase next month despite moderate wage growth.” Reuters also notes, however, that “in another report, the Labor Department said productivity decreased at a 0.6 percent annualized rate in the first quarter, the weakest in a year, after rising at a 1.8 percent pace in the fourth quarter. It increased at a 1.1 percent rate compared to the first quarter of 2016.”
State-sponsored retirement plans for low-income workers exempted from strict ERISA requirements under the Obama Administration will likely see that protection revoked. According to CNBC, the Senate passed a resolution to repeal the exemption. The resolution previously passed the House, and President Trump is expected to sign it into law. Under the plans in question, “private-sector workers whose employers do not offer 401(k) or other retirement benefits, and who often have low incomes, are automatically enrolled in plans being launched in some states, such as Illinois. States say the exemption would have let employers pass workers’ money into plans without footing ERISA compliance costs.”
Pennsylvania legislators are considering requiring state labor contracts to be publicly announced before they approved. The Meadville Tribune notes that “a state bill awaiting a final vote in the Senate would require labor contracts for state workers and school employees to be released to the public before they are approved.” Under the proposal, “information posted would include a statement of the terms of the proposed collective bargaining agreement and an estimate of the costs to the public employer associated with the agreement.”
Finally, Bloomberg Businessweek published an analysis of the use of “protection contracts— agreements negotiated between a company and a union that doesn’t legitimately represent workers” by autoworker unions in Mexico. Experts state that such agreements, which are illegal in the U.S., in Mexico are “a primary reason that wages in the auto sector have stagnated in recent years, despite a fresh wave of investments by foreign carmakers, most recently by German and Japanese manufacturers” and that “Mexico’s union bosses and politicians are more interested in keeping corporations happy than in raising the living standards of workers.”
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April 24
NLRB seeks to compel Amazon to collectively bargain with San Francisco warehouse workers, DoorDash delivery workers and members of Los Deliveristas Unidos rally for pay transparency, and NLRB takes step to drop lawsuit against SpaceX over the firing of employees who criticized Elon Musk.
April 22
DOGE staffers eye NLRB for potential reorganization; attacks on federal workforce impact Trump-supporting areas; Utah governor acknowledges backlash to public-sector union ban
April 21
Bryan Johnson’s ULP saga before the NLRB continues; top law firms opt to appease the EEOC in its anti-DEI demands.
April 20
In today’s news and commentary, the Supreme Court rules for Cornell employees in an ERISA suit, the Sixth Circuit addresses whether the EFAA applies to a sexual harassment claim, and DOGE gains access to sensitive labor data on immigrants. On Thursday, the Supreme Court made it easier for employees to bring ERISA suits when their […]
April 18
Two major New York City unions endorse Cuomo for mayor; Committee on Education and the Workforce requests an investigation into a major healthcare union’s spending; Unions launch a national pro bono legal network for federal workers.
April 17
Utahns sign a petition supporting referendum to repeal law prohibiting public sector collective bargaining; the US District Court for the District of Columbia declines to dismiss claims filed by the AFL-CIO against several government agencies; and the DOGE faces reports that staffers of the agency accessed the NLRB’s sensitive case files.