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For Immediate Release
January, 09 2024, 05:49pm EDT
Contact:
Phone: (202) 775-8810
EPI applauds new DOL rule to curb employer misclassification of workers as independent contractors
Statement by Heidi Shierholz
EPI welcomes the U.S. Department of Labor’s final rule issued today that will combat employer misclassification of workers as independent contractors and ensure that more workers can enjoy the rights and protections they are already legally entitled to.
Employer misclassification of workers as independent contractors robs workers of labor rights and threatens their economic security. Many workers are harmed by employer misclassification—particularly those in the lowest-wage and most difficult jobs, such as nail salon workers, truck drivers, and construction workers. Allowing employers to exploit loopholes in labor law puts these workers at greater risk. A previous EPI analysis found that in 11 commonly misclassified occupations, workers misclassified as independent contractors lose out on thousands of dollars in earnings and benefits per year, compared with workers doing the same job with employee status.
Since this rule was proposed, opponents of this rule have waged an all-out misinformation war, claiming that independent entrepreneurs and business owners will now be forced into employee status against their will. The reality is that if the Trump administration’s rule was allowed to stand, workers with far less power to actually set the terms and conditions of their employment—not bonafide contractors—would have continued to lose out on basic worker protections, earnings, and benefits to which they should be entitled.
EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI's research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans.
(202) 775-8810LATEST NEWS
Low-Wage Workers to Democratic Leaders: Fight for Us or Face 'Consequences'
"Democrats must act now to protect workers and show that they are fighting for the people who need them most," said one economic justice leader.
Nov 19, 2024
With Democratic leaders grappling with how to move forward following this month's devastating electoral losses and governors in the party moving to resist President-elect Donald Trump's policies, low-wage workers are planning on Wednesday to send a clear message to several Democrat-led statehouses: Prioritize workers and fair wages, or "face the consequences."
The national economic justice group One Fair Wage, which works closely with restaurant industry and other service workers, is organizing direct actions in Detroit, New York, and Springfield, Illinois, demanding that Democratic leaders in blue states "act decisively" to protect working people from Trump's anti-regulation, pro-corporate agenda.
The group said tipped service workers, advocates, and labor leaders will take part in the actions, in which participants will deliver an open letter calling for the passage of legislation to raise the minimum wage and eliminate subminimum wages.
"Workers in blue states are raising their voices because they cannot afford to wait any longer," said Saru Jayaraman, co-founder and president of One Fair Wage. "With a cost-of-living crisis squeezing families and an anti-worker Trump administration on the horizon, Democratic leaders must act boldly to protect workers and provide economic security. If they fail to prioritize wages and worker protections, they risk losing the trust—and the votes—of the very people they need to win."
The actions come after preliminary demographic data from the election showed working-class voters from a variety of racial backgrounds swung toward Trump. Two-thirds of Trump voters said they had to cut back on groceries because of high prices, according to a New York Times/Siena College survey, compared to only a third of people who supported Vice President Kamala Harris. Latino-majority counties shifted toward the Republican former president by 13 percentage points, and Black-majority counties did the same by about three points.
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability."
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability," said Jayaraman.
The actions were planned amid reports that U.S. Ambassador to Japan Rahm Emanuel, a key adviser to former President Barack Obama, is among those considering a run for chair of the Democratic National Committee—a plan that one former adviser to Sen. Bernie Sanders (I-Vt.) said seemed aimed at ensuring "the Democratic Party continues to lose working-class voters." Other possible contendersinclude former Maryland Gov. Martin O'Malley and, reportedly, progressive Wisconsin Democratic Party Chair Ben Wikler.
One Fair Wage said that following Democratic losses across the country, and with Republicans set to take control of the White House and both chambers of Congress in January, Democratic leaders at the state level must "act boldly on behalf of working families."
In Michigan, workers will call on Gov. Gretchen Whitmer to uphold the state Supreme Court's decision to raise the minimum wage and eliminate subminimum wages for tipped workers.
At the Illinois state Capitol, advocates plan to push for statewide legislation to extend fair wages for all workers, building on Chicago's minimum wage reforms.
In New York, One Fair Wage will lead the call for Gov. Kathy Hochul to "safeguard tipped and immigrant workers from the looming anti-worker policies of the incoming Trump administration."
The workers and supporters will deliver their demands to state lawmakers as well as hold "solidarity turkey giveaways for struggling families let down by elected officials."
Since the election, some Democratic governors have pledged to resist Trump's far-right agenda. California Gov. Gavin Newsom called a special legislative session aimed at "Trump-proofing" the state by finalizing climate measures and protecting reproductive and other kinds of healthcare. Govs. JB Pritzker of Illinois and Jared Polis of Colorado announced a coalition that will resist Trump's deportation plan and reinforce key state institutions.
The governors' plans have not specifically mentioned efforts to protect workers from Trump's policies. The president-elect attempted to pass regulations that would make tips the property of employers during his last term, and the National Restaurant Association has pledged to revive such efforts in the next four years.
"Democrats must act now to protect workers and show that they are fighting for the people who need them most," said Jayaraman. "Ignoring these demands will lead to alienated voters and further political losses."
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Sanders Says US Complicity in Gaza 'Must End' Ahead of Senate Vote to Block Arms to Israel
"The United States government is currently in violation of the law, and every member of the U.S. Senate who believes in the rule of law should vote for these resolutions," said Sen. Bernie Sanders.
Nov 19, 2024
A group of U.S. senators led by Bernie Sanders of Vermont held a press conference Tuesday urging their colleagues to support resolutions that would block the sale of tank rounds, bomb kits, and other weaponry to the Israeli government, which has repeatedly used such arms to commit horrific war crimes in the Gaza Strip over the past 13 months.
"The truth of the matter is, from a legal perspective, these resolutions are not complicated; they're cut and dry," said Sanders (I-Vt.), who introduced the joint resolutions of disapproval last month alongside several other members of the Senate Democratic caucus.
"The United States government is currently in violation of the law, and every member of the U.S. Senate who believes in the rule of law should vote for these resolutions," Sanders continued, pointing to U.S. statutes prohibiting the sale of weaponry to countries violating internationally recognized human rights or obstructing American humanitarian aid.
Sanders was joined at Tuesday's press conference by Sens. Peter Welch (D-Vt.), Jeff Merkley (D-Ore.), and Chris Van Hollen (D-Md.), each of whom made their case to fellow senators ahead of a scheduled floor vote on Wednesday.
"What's unfolding before our very eyes right now is mass starvation and the spread of disease," said Welch. "Is the United States and its foreign policy... forced to be blind to the suffering before our very eyes?"
Surrounding the senators as they spoke were photographs of destruction and emaciated children in Gaza, where most of the population is displaced and crowded into small segments of the enclave as Israeli bombs rain down and famine takes hold.
Watch the full press conference:
The resolutions will hit the floor for a vote Wednesday with the backing of a broad coalition that includes Jewish Voice for Peace Action, the Council on American-Islamic Relations, J Street, the Service Employees International Union (SEIU), Oxfam, and other organizations and activists.
"For over a year, the Biden administration has funded the Israeli government's brutal genocide of Palestinians in Gaza, despite overwhelming opposition from across the country," said Beth Miller, political director of Jewish Voice for Peace Action, which said it has driven more than 56,200 letters and more than 20,790 phone calls to senators imploring them to support the measures.
"These joint resolutions of disapproval are one of the last chances that Senate Democrats have before Republicans take control in January to uphold human rights, honor the will of the American people, and stand on the right side of history by blocking weapons to the Israeli military," Miller added.
"It is time to tell the Netanyahu government that they cannot use U.S. taxpayer dollars and American weapons in violation of U.S. and international law, and in violation of our moral values."
Since the October 2023 Hamas-led attack on Israel, the U.S. has supplied its ally with more than 50,000 tons of weaponry and approved billions of dollars in additional arms and military equipment to be delivered in years to come. U.S. military support has helped Israel carry out a large-scale military assault on Gaza, killing more than 43,000 people so far—a majority of them women and children.
To sustain the flow of American weapons, the Biden administration has contradicted the findings of its own experts and outside analysts by declaring publicly that it has not found Israel to be illegally blocking U.S. humanitarian aid in the Gaza Strip. Meanwhile, aid groups on the ground say humanitarian assistance has plummeted to an all-time low in recent weeks, with an average of just 37 aid trucks entering Gaza per day in October.
During Tuesday's press conference, Sanders said the "most important point to be made" ahead of Wednesday's vote is that "the United States of America is complicit in these atrocities."
"That complicity must end, and that is what these resolutions are about," said Sanders. "It is time to tell the Netanyahu government that they cannot use U.S. taxpayer dollars and American weapons in violation of U.S. and international law, and in violation of our moral values."
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Putin Shifts Nuclear Posture as Ukraine Fires Long-Range Missiles into Russia
The "window to avert catastrophic miscalculation is now that much narrower," warned one expert after Biden lifted restrictions on U.S.-supplied weapons.
Nov 19, 2024
Fresh fears of escalation were expressed Tuesday after Ukraine struck territory deep inside of Russia using long-range missiles for the first time within hours of the Kremlin announcing changes to its nuclear weapons posture.
In the pre-dawn hours, Ukraine reportedlyused U.S.-supplied ATACMS missiles to attack an ammunition depot in the Bryansk region of Russia, located less than 200 miles north of a small strip of Russian territory currently held by Ukraine thanks to an incursion mounted in summer 2024. Russian forces are working to push back Ukrainian forces in the area.
The Russian Defense Ministry confirmed that there was an attack. "At 3:25 a.m. this morning the enemy struck a site on the territory of the Bryansk Region with six ballistic missiles. According to confirmed data, US-made ATACMS tactical missiles were used. As a result of an anti-missile battle, five missiles were shot down and one was damaged by crews of S-400 and Pantsir missile defense systems," the ministry said in statement, according to the Russian government-run news agency TASS.
Russian Foreign Minister Sergey Lavrov said that Russia would respond "accordingly."
The attack comes on the 1,000th day of Russia's full-scale invasion of Ukraine that began in 2022, and mere days after President Joe Biden green lit Ukraine's use of these specific weapons – in what The New York Times characterized as a "major shift of American foreign policy" and one foreign policy expert called a "needlessly escalatory step."
Ukraine President Vlodomyr Zelenskyy has long sought permission from the U.S. government to use Army Tactical Missile Systems, or ATACMS, according to the Financial Times. Zelenskyy has also asked for the lifting of restrictions on other long-range weapons provided by NATO countries – including Storm Shadow missiles from the United Kingdom. The U.S. began supplying the Lockheed Martin-produced ATACMS earlier this year, according to Defense One, but imposed restrictions on their use due to the escalatory implications of Ukraine using them to strike targets far inside Russian territory.
Also on Tuesday, Russian President Vladimir Putin signed a decree implementing changes to the country's nuclear doctrine that lower the threshold for potential nuclear weapons use.
Under the updated doctrine, "aggression against the Russian Federation and (or) its allies by any nonnuclear state with the participation or support of a nuclear state is considered as their joint attack," according to the The New York Times.
"The big picture is that Russia is lowering the threshold for a nuclear strike in response to a possible conventional attack," Alexander Graef, a senior researcher at the Institute for Peace Research and Security Policy at the University of Hamburg, toldReuters.
"Russia's new nuclear doctrine means NATO missiles fired against our country could be deemed an attack by the bloc on Russia. Russia could retaliate with WMD against Kiev and key NATO facilities, wherever they're located. That means World War III," wrote former Russian President Dmitry Medvedev on X early Tuesday.
U.S. intelligence analysts have also concluded that granting Ukraine the ability to use U.S., French and U.K.-supplied long-range missiles could prompt forceful retaliation by Russia, but that the move would likely not fundamentally alter the course of the war.
Mark Episkopos, a Eurasia research fellow at the Quincy Institute for Responsible Statecraft, warned Monday that use of such weapons by the Ukraine military would likely not impact the battlefield advantages of either side in the immediate term but puts "Russia and NATO one step closer to a direct confrontation."
"With such weapons now in play," added Episkopos, "the window to avert catastrophic miscalculation is now that much narrower."
Meanwhile, in a Tuesday statement on X, the International Campaign to Abolish Nuclear Weapons (ICAN), said it was "dangerously complacent" for Western politicians and pundits to dismiss Putin's shift as some kind of bluff.
"We can’t know if Putin—or any leader of a nuclear-armed country—will use nuclear weapons at any time," argued ICAN. "No matter the size of a nuclear weapon any use would escalate rapidly into a nuclear war devastating the world. The stakes are simply too high to assume Putin is bluffing."
ICAN, the 2017 winner of the Nobel Peace Prize, said that the "way to prevent nuclear weapons from ever being used again is to eliminate them, and treaties like the Treaty on the Prohibition of Nuclear Weapons are here for that."
The Biden administration's rollback of restrictions comes after thousands of North Korean troops have joined the Russian military effort, and as President-elect Donald Trump's January inauguration approaches. Trump has said he will seek a swift end to the war and criticized the amount of aid the United States has provided Ukraine.
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