Tag Archives: gig economy

Thanks for reading Nebraska Workers’ Compensation Watch

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My article in Trial Magazine started out as a post on this blog

If you are a member of The American Association of Justice (AAJ) you can read my article “Portable Benefits and The Gig Economy” in this month’s edition of Trial Magazine. If you are a plaintiff’s lawyer and not an AAJ member, you can click here to join AAJ.

If you are a non-plaintiff’s lawyer reader of this blog you can click here or here for what amount to rough drafts of the Trial article. (Sorry the article is copyrighted to AAJ and only available to members)

Briefly, the main takeaway from my article is that while the fight over worker misclassification as it relates to the gig economy is an old fight, the move to develop a separate employee benefits scheme is a new issue. Of course, some more senior practitioners, namely Tom Domer, have pointed out privately that remedies like today’s “portable” benefits” proposals were proposed in the late 19t/early 20th century when workers’ compensation laws were being proposed, debated and drafted.

I assume that I will be writing more about portable benefits in the future as events and time warrant. But for now, my next big blog project is going to be exploring how employment risk fits in within the so-called “grand bargain” of workers’ compensation. My thesis is that workers’ compensation developed in response to new risks from the newly industrializing economy of the late 19th century. Farm and domestic workers were excluded from those laws as judges in the late 19th century thought risks of those occupations where inherent. Putting aside legitimate concerns about how this excluded women and African-Americans from workers’ compensation, I think this exclusion is why employment risk is such a hotly contested issue as industrial jobs decline and service jobs increase.

This exclusion of workers from workers’ compensation, which is inherent in workers’ compensation, is one reason why I don’t like the term “grand bargain” in describing the origins of workers’ compensation. My dislike of the term grand bargain will probably be fleshed out over the next few months as well.

So thanks for continuing to read Nebraska Workers’ Compensation Watch. Thanks to all the attorneys, whether on the worker or management side, who take the time to write original content based on their experience in practice. I gain insight from what you write and I will continue to try to provide insight to lawyers and non-lawyers alike about workers’ compensation and employment law.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Nebraska, portable benefits, The Grand Bargain, Workers Compensation and tagged , , , .

Amazon, Walmart and the “Shameless” Economy

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With holiday shopping in full swing, Gizmodo just ran a long article about how Amazon is using an Uber-like app to hire delivery drivers as independent contractors.

Back in June, I blogged about a Walmart program where Walmart employees were being used to deliver packages. I pointed out in the piece that at least Walmart delivery drivers would be treated as employees in contrast to Fed Ex drivers and now Amazon drivers who have no employment protections like workers compensation or unemployment insurance if they get hurt on the job.

On social media, I’ve pointed out that Walmart actually seems to be better on employee classification than Amazon. That’s a pretty startling admission from me as Walmart has long been a target of criticism for their employment practices from our firm and any other sentient employee rights advocate with a platform.

When I read the Gizmodo article about Amazon, I thought about an episode of Shameless where the ever enterprising Lip underbids illegal aliens on a construction job with a group of rich kids looking to do volunteer work to bolster their college resumes. Up until now, Walmart has been a leader in the low wage economy. But leave it to Amazon to underbid Walmart in the race to the bottom.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in employment law, Misclassification, Workers' Compensation and tagged , , , , .

Portability, The Gig Economy And Workers Compensation

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Changing employment laws to encourage so-called “portable benefits” is an idea that goes hand in hand with finding new ways to classify gig economy workers. These proposals are being pushed in a  growing number of states. These proposals also enjoy support from Democrats and Republicans in Congress. These proposals could also radically alter workers’ compensation in the United States.

The idea of third classification of worker between employee and independent contractor is to give so-called “gig economy” workers some protections and benefits without employers having to bear the full costs of employment – including unemployment, workers’ compensation and health insurance. Sometimes this third class of workers is described as “dependent contractors.

Portable benefits are usually discussed in the context of contractors because traditionally benefits such as unemployment, workers’ compensation and health insurance have been provided by employers. So-called portable benefits, are detached from employers. The Affordable Care Act increased portability of health insurance benefits through the use of exchanges Portability of health insurance was touted as a way to help create new businesses because potential entrepreneurs were not tied to an employer for health insurance.

The idea of portable benefits and a new classification for gig employers is also touted as a way to reduce litigation against companies such as Uber for how they classify employees. But former National Labor Relations Board member Craig Becker pointed out that creating a new class of workers may actually create more litigation when employers try to re-classify employee as dependent contractors. Becker and others pointed out that this is what happened in Italy when Italy created a third class of worker that was neither employee nor independent contractor.

Becker and others point out that the drive to create a new class of workers is being driven by tech companies such as Uber as a way of reducing labor costs. The real risks of creating a new classification of workers is shared even by some who promote the sharing or gig economy. Gene Zaino, founder and CEO of MBO Partners, a firm that provides services to independent workers, stated that any new classification of independent workers should only include workers who earn more than $50 per hour. Under such a scheme lower-paid workers would still retain the benefits and protections of the employment relationship.

Though states are pondering portability and dependent contractor laws, there is a push for federal legislation so that laws can remain uniform across the country. Any federal push for portable benefits for so-called independent workers would clash with state-based workers’ compensation laws. Workers’ compensation is traditionally a state law concern because when workers’ compensation laws were enacted the power of the federal government to implement laws regarding workplace safety were limited. During the New Deal-era, that interpretation of the interstate commerce clause changed to allow broad regulation of the workplace.

Advocates for state-based workers’ compensation laws likely have little constitutional grounds to overturn any federal legislation that would substitute “portable benefits” for so-called “independent workers” for state-based workers’ compensation benefits. Some critics who argue, correctly, that many state-based laws inadequately compensate injured workers could also be open to or even welcome a federal substitute for  insufficient state workers’ compensation laws.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in employment law, Government, Legislation, Workers' Compensation and tagged , , , , .

Tax Day For Independent Contractors: More Paperwork, More Taxes

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The issue of whether Uber drivers and other so-called “Gig Economy” workers are employees or independent contractors is a hot topic among lawyers and policy makers. But last week independent contractors in the Gig Economy and beyond had a more mundane but no less serious dilemma:

Filing their taxes

Independent contractors are required to pay their full FICA and Medicare taxes. These higher taxes can be offset by more liberal deductions but that assumes a contractor has more expenses to deduct.

Deductions also require paperwork.  Filing your taxes as an IRS Form 1099 independent contractor is more complicated than filing your taxes as an IRS W-2 employee.

Independent contractor status can be helpful for someone who wants to be an entrepreneur. But for those who just want to support themselves and family, involuntary independent contractor status can mean higher taxes, more paperwork and more risk of trouble with the IRS and state revenue agencies.  Future tax days could be even more stressful if more workers are forced into independent contractor status in order to support themselves and families.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in employment law, Government, Misclassification and tagged , , , , , .