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Wednesday, April 17, 2024
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Tuesday, April 16, 2024
Did the Biden Administration Just Kill The Independent Contractor In the United States?
Is the Independent Contractor Dead? Examining the DOL's New Rule on Worker Classification (RIN 1235-AA43)
Staff | April 16, 2024
Rule went into effect on March 11, 2024
The recent ruling by the Department of Labor (DOL) titled "Employee or Independent Contractor Classification Under the Fair Labor Standards Act" (RIN 1235-AA43) has sparked debate about the future of independent work. While some headlines proclaim the "death of the independent contractor," the reality is more nuanced.
- In 2022 there were 31.9 million independent contractors in the United States.
- Independent contractors earned 40% more income than working at the same comparable job as an employee.
- Employers saved 30% of costs by hiring an independent contractor.
- The highest paid independent contractors can earn 6 figures or more.
What Is an Independent Contractor?
The equipment and tools required to do the task are often owned by independent contractors. In addition, they bear the expense of insurance, maintenance, and repairs. It is also common for independent contractors to have contractual authority over and accountability for an asset under a rental or lease arrangement.
The Shift and Recession
In 2021, the DOL issued a rule that established a new test for classifying workers, placing more emphasis on a worker's control over their work and opportunity for profit or loss. This rule, seen as favoring businesses, was met with criticism from worker advocates. Legal challenges ensued, and the DOL ultimately rescinded the 2021 rule in January 2024.
The New Rule: A Return to Tradition
The new rule reinstates the "economic reality test" used for decades. This test considers a broader range of factors, including:
- Control: The level of control the employer exerts over the worker's work schedule, tools, and methods.Investment: Whether the worker invests significant funds in their own equipment or business.
- Permanency: If the work is a permanent or integral part of the employer's business.
- Skill and Initiative: The level of skill required and the worker's independent initiative.
- Opportunity for Profit or Loss: Whether the worker has the potential to make a profit or suffer a loss based on their own efforts.
Impact on Independent Work
The new rule doesn't eliminate independent contracting entirely. However, it makes it more challenging for businesses to classify workers as independent contractors if they don't meet the multi-factor test. This could lead to:
- Increased Costs for Businesses: Businesses that previously classified workers as independent contractors may now need to reclassify them as employees, incurring costs associated with minimum wage, overtime pay, and benefits.
- Reduced Flexibility for Some Workers: Workers who enjoyed the flexibility of independent contracting may find fewer opportunities or stricter controls if they are classified as employees.
The Future of Independent Work
While the new rule tightens the reins on independent contractor classification, it doesn't necessarily spell its doom. Here are some possibilities:
- Focus on Genuine Independence: Businesses may need to structure work arrangements to ensure workers have a greater degree of control, investment, and opportunity for profit or loss.
- Rise of Hybrid Models: New models that combine elements of employee and independent contractor status might emerge to cater to worker preferences for flexibility while ensuring appropriate protections.
- Legislative Changes: Further legislation could be introduced to create clearer categories for different types of work arrangements.
The Roll of Labor Unions
There is strong evidence to suggest that labor unions played a role in influencing the DOL's new rule on worker classification, though the exact extent is difficult to pinpoint. Here's how:
- Alignment of Interests: Labor unions have long advocated for stricter worker classification rules. They argue that many workers are misclassified as independent contractors, denying them benefits and protections under the Fair Labor Standards Act (FLSA). The new rule, with its multi-factor test, aligns with this goal.
- Public Advocacy: Labor unions have been vocal critics of the 2021 rule and expressed support for a return to the pre-2021 "economic reality test." They likely lobbied the DOL and Congress to push for this change.
- Shifting Political Landscape: The current administration is generally considered more receptive to labor union concerns compared to the previous one. This shift in political priorities likely created a more favorable environment for the new rule.
However, it's important to consider these nuances:
Broader Worker Advocacy: While labor unions were likely a significant voice, the movement for stricter classification wasn't limited to them. Worker advocacy groups and individual workers also expressed concerns about misclassification.
Focus on Legal Precedent: The DOL frames the new rule as a return to a well-established legal standard based on judicial precedent. This justification downplays the influence of any specific group, including labor unions.
Independent Contractors This Rule Will Effect
The impact of the DOL's new rule on worker classification will likely be felt most acutely in industries that rely heavily on independent contractors, particularly those where the level of control exerted by the company and the worker's independence can be blurry. Here are some examples of independent contractor roles that could be affected:
- Gig Economy Workers: Delivery drivers, rideshare drivers, and freelance service providers on platforms like Upwork and Fiverr may face increased scrutiny. Businesses may need to reclassify them as employees if they don't have enough control over their work schedules, tools, and methods.
- Construction Trades: Independent contractors in construction, like electricians, plumbers, or carpenters, could be impacted. If a company exerts significant control over their work on specific projects, they might be classified as employees.
- Creative Industries: Freelance writers, editors, graphic designers, and photographers may be affected. The line between independent contractor and employee can be blurry in these fields. The new rule will likely encourage clearer contractual agreements that define control, investment, and opportunity for profit or loss.
- Sales Professionals: Independent salespeople who work on commission might be reviewed. If the company dictates their sales territory, quotas, and customer interactions to a high degree, they could be classified as employees.
It's important to remember that the new rule applies a multi-factor test. Not all independent contractors in these fields will automatically be reclassified. However, businesses that rely heavily on independent contractors with minimal control and investment on the worker's side should be prepared to potentially reclassify them as employees. This could lead to increased costs and administrative burdens.
President Biden's Role in Changing This Rule
Proposed changes to this rule began under the Biden Administration in 2021. President Trump had made changes to the rule during 2020 that would have lowered the standard of classifying whether a worker was an independent contractor but they never got the chance to go into effect in March of 2021 when Biden delayed the ruling and withdrew the rules.
"Judge Marcia Crone of the U.S. District Court for the Eastern District of Texas reinstated the Trump administration's rule in a March 14, 2022 order, finding that the Biden administration's actions violated the Administrative Procedure Act (APA)." Shrm.org
Here are some resources for businesses to stay informed
The Department of Labor's website on worker classification:
https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking
Contact Legal counsel specializing in employment law
Federal Register:
https://www.federalregister.gov/documents/2024/01/10/2024-00067/employee-or-independent-contractor-classification-under-the-fair-labor-standards-act
Conclusion
The DOL's new rule on worker classification is a significant development with potential consequences for both businesses and workers. While it may make independent contracting more challenging in some cases, it is unlikely to completely eradicate this form of work. The future of independent work will likely involve adaptation and innovation to comply with the new legal landscape.
Labor unions undoubtedly played a role in advocating for the new DOL rule. Their interests aligned with the goal of ensuring workers receive proper protections. However, it's likely a combination of factors, including broader worker advocacy and adherence to legal precedent, that shaped the final rule.
Sources:
The US Department of LaborDeel
Google (searches)
Zip Recruiter
Statista
SHRM.org (https://www.shrm.org/topics-tools/employment-law-compliance/federal-judge-reinstates-trump-era-independent-contractor-rule)
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Friday, March 29, 2024
The Origin Story of April Fool's & Jokes
The History of April Fool's Day
Staff | March 29, 2024
One of the most popular theories dates back to 16th-century France. In 1582, France switched from the Julian calendar to the Gregorian calendar (as called for by the Council of Trent in 1563). This change moved the start of the new year from the end of March (around the time of the vernal equinox) to January 1. According to the story, people who failed to realize that the start of the new year had moved to January 1st or who continued to celebrate it during the end of March through April 1st were mocked as fools.
Other theories suggest that April Fools' Day was tied to ancient festivals such as Hilaria, celebrated in Rome at the end of March, which involved people dressing up in disguises. There's also a reference to a kind of April Fools' Day in Geoffrey Chaucer's "The Canterbury Tales" (1392), which some interpret as a story involving a trick played on a cocky rooster (though this interpretation is debated).
Purpose
The primary purpose of April Fools' Day has always been to entertain and to play harmless pranks on others. It's a day characterized by humor and lightheartedness, where people can engage in jests and jokes without being taken too seriously.
Evolution Over Time
In its early days, April Fools' Day involved pranks played among individuals and sometimes elaborate schemes among groups. It was largely an informal day of jesting without any significant social or political implications.
In the modern era, April Fools' Day has taken on a new dimension with the involvement of media outlets, corporations, and even governments participating in the tradition. Newspapers, TV stations, and websites have been known to publish fake stories to trick their audiences. Corporations sometimes announce bogus products or services to amuse their customers. The rise of the internet and social media has only amplified the reach and creativity of April Fools' jokes, allowing for more elaborate pranks that can quickly go viral.
Conclusion
While the exact origins of April Fools' Day may remain a subject of speculation, the day has undoubtedly found a place in various cultures as a time for humor and jest. Its evolution from potentially celebrating the new year at a different time to a day for pranks and jokes reflects a fascinating journey. As society and technology have evolved, so too have the ways in which people participate in April Fools' Day, showcasing human creativity and the universal love for a good laugh.
April Fool's Day Jokes
1. Why did the picture go to jail? Because it was framed!
2. What's the best day to go to the beach? April Pool's Day!
3. Why did the student eat his homework? Because the teacher said it was a piece of cake!
4. What do you call a dinosaur that is sleeping? A dino-snore!
5. Why couldn't the bicycle stand up by itself? Because it was two-tired!
6. How do you catch a squirrel? Climb a tree and act like a nut!
7. What do you call fake spaghetti? An impasta!
8. Why did the scarecrow win an award? Because he was outstanding in his field!
9. What do you get when you cross a snowman and a vampire? Frostbite!
10. Why did the golfer bring two pairs of pants? In case he got a hole in one!
Enjoy sharing these jokes and have a fun April Fools' Day!
Sources:
Wikipedia & Google, Image by Canva
Thursday, March 28, 2024
NASA Will Shoot Three Rocket At This Years Solar Eclipse, Buy Why?
NASA to Launch Rockets During Solar Eclipse to Study Upper Atmosphere
Staff | March 28, 2024
Objective: This report details NASA's plan to launch three rockets during the total solar eclipse occurring on April 8, 2024.
Mission Name: Atmospheric Perturbations around Eclipse Path (APEP)
Launch Site: Wallops Flight Facility, Virginia
Target: The eclipse path's (115 miles wide) impact on Earth's upper atmosphere (ionosphere).
Why Rockets? Unlike satellites, rockets can be precisely timed to launch into the eclipse path, allowing for measurements at specific moments. This is crucial because the eclipse causes a swift drop in sunlight, creating a unique opportunity to study the ionosphere's response.
The Science: The sudden darkness triggers large-scale atmospheric waves and smaller disturbances within the ionosphere. These changes impact radio communication frequencies. By launching rockets at key points during the eclipse (before, during, and after peak), NASA aims to gather data on:
- Changes in electric and magnetic fields
- Ionospheric density variations
- Temperature fluctuations
Image: Solar Flare
Benefits: Understanding these perturbations will improve our knowledge of how the ionosphere reacts to space weather events like solar flares and coronal mass ejections. This knowledge can enhance:
Radio communication reliability: Mitigate disruptions to GPS, radio navigation, and other communication systems influenced by the ionosphere.
Space weather forecasting: Develop more accurate models to predict solar storms and their impact on Earth's atmosphere.
The APEP mission offers a valuable chance to study the ionosphere's response to a total solar eclipse. The data collected will contribute to a better understanding of space weather and its effects on Earth's technological infrastructure.
Sources: Forbes, Nasa
Wednesday, March 27, 2024
Chasing Totality - The Ultimate Guide to Viewing the 2024 Solar Eclipse in the USA
Chasing Totality - The Ultimate Guide to Viewing the 2024 Solar Eclipse in the USA
Staff | March 28, 2024
As an Amazon Associate I earn from qualifying purchases.
This
celestial spectacle is fast approaching, and for sky enthusiasts, the
2024 Total Solar Eclipse is a must-see event. This blog will be your
one-stop guide for travelers seeking the perfect spot to witness
totality within the United States.
Prime Locations for Totality
Are you in the Path of the Solar Eclipse? Click Here to Find Out!
Texas: The Lone Star State takes the crown for best weather prospects. Cities like Dallas, San Antonio, and Austin offer clear sky possibilities and a longer duration of totality.
Arkansas: Hot Springs National Park is a unique location, being one of only two National Parks in the path. With its natural beauty and "Eclipse Fest" events, it's a popular choice.
Ohio: Home to Cuyahoga Valley National Park, another park on the totality path. This location boasts scenic landscapes and historical significance near Neil Armstrong's hometown.
Niagara Falls (New York): Imagine the iconic falls shrouded in twilight during totality! Terrapin Point offers a breathtaking perspective for photography enthusiasts.
Best Times to View the Solar Eclipse:
Traveler Considerations
- Accommodation: Totality zones will be bustling, so booking hotels or campsites well in advance is crucial.
- Weather: While Texas has the best forecast, be prepared for anything. Pack for changeable weather conditions. Click here for your weather forecast.
- Transportation: Traffic congestion is expected. Consider carpooling or using public transportation near viewing areas. Click here to get live traffic updates!
Seeing Safely: Solar Eclipse Eye and Skin Protection for You and Your Furry Friends
The total solar eclipse on April 8th, 2024, promises to be a spectacular event. But before you step outside to witness the celestial dance, make sure you prioritize safety for yourself, your family, and even your pets! Here's what you need to know:
Eye Safety
- The No-No: Looking directly at the sun, even for a moment, can cause permanent eye damage, including solar retinopathy (sunburn on the retina). This can lead to blurry vision, blind spots, or even complete vision loss.
- Safe Viewing: Certified eclipse glasses are your
best bet. Check out these Solar Eclipse Glasses that adhere to the ISO 12312-2 international
safety standard. These filter out harmful solar radiation while allowing
a safe view of the eclipse.
- Not Sunglasses: Regular sunglasses, even very dark ones, do not provide enough protection. Homemade filters are also unsafe.
- Approved AAS.org solar eclipse eye glass makers list.
Skin Safety
The sun's intensity won't be significantly reduced during the eclipse. Standard sun protection measures are still recommended:
- Sunscreen: Protect your skin with Coppertone Sport, a broad-spectrum sunscreen with SPF 30 or higher to exposed skin.
- Clothing: Wear protective clothing that covers your arms and legs. Look at this Columbia Unisex Bora Bora Wide Brim Hat, get one for the entire family!
- Seek Shade: Especially for extended viewing periods, find areas with shade, especially for children and people with sensitive skin.
Pet Protection
Our furry friends are just as curious as us! Here's how to keep them safe:
- Keep them Indoors: If possible, keep pets indoors during the peak viewing times.
- Supervised Viewing: If you must take your pet outside, keep them leashed and supervised. Don't let them look directly at the sun.
- Provide Shade and Water: Ensure your pet has access to cool shade and plenty of water to stay hydrated.
Viewing Devices
- A Solar Eclipse will damage your phone's camera and prevent you from taking nice pictures if you aim your camera directly toward the sun and hold it there for an extended period of time. Solar Eclipse Smartphone Filter, don't ruin your phone!
- Eclipse Glasses: These specially filtered glasses come in various styles and are readily available for purchase from reputable retailers. Solar Eclipse Glasses
- Pinhole Projectors: This is a fun and safe DIY option. Create a small hole in a cardboard box and project the sunlight onto a white surface for an indirect view of the eclipse. A kitchen colander also works to this effect.
- Trees: Standing under a tree that is fully leafed out will protect you from the harmful effect of the eclipse while allowing you to safety viewing it on the ground. The leaves will cast a shadow of what is happening in the sky.
Remember: Safety first!
With proper precautions, the 2024 solar eclipse can be a memorable and
educational experience for everyone.
Click Here to Learn More About Solar Eclipse Safety!
Enhancing Your Eclipse Experience
- Local Events: Many towns along the path host festivals and gatherings. Research events that pique your interest.
- Expert Talks: Attending talks by astronomers or eclipse chasers can deepen your understanding of the event.
- Photography Tips: Research proper techniques for capturing the eclipse with your camera.
Remember: This
is a shared experience. Be courteous to fellow viewers, arrive early to
secure your spot, and most importantly, soak in the awe-inspiring
wonder of a total solar eclipse!
Source: NASA, Google
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