Biden Administration Could Kill Two Companies with One Rule
The proposed Biden Administration rule that may reclassify more independent contractors as employees threatens the existence of Uber, Lyft and countless other enterprises. This issue is simply about union power and dues. Nothing more.
Has anyone asked workers if they want to be employees? No. Workers are independent contractors when they perform a job as they desire (behavioral control), receive lump-sum payments and have the opportunity for profit or loss (financial control), and must perform the job to completion (relationship control) (see Common Law Control Test). Uber, Lyft, janitorial, home care, and construction workers often choose these professions for the earnings, schedule and process flexibility that they offer. Those workers that wish to seek employment have 10 million open jobs in the U.S. from which to choose.
On the flip side, employee status is required to receive benefits, and only employees can form unions. Unions are the primary beneficiaries of this proposed rule change. I am not against unions in any way. I am against forcing workers to become employees because of the perception that workers are exploited as independent contractors. Candidly, Uber, Lyft and countless other enterprises will go out of business if workers are classified as employees because a) their workers don’t wish to be employees, and b) their business models simply cannot absorb the full cost of employee benefits. Uber, Lyft and these types of businesses have provided an invaluable alternative to older, more costly regulated services.
This proposed rule change is a solution looking for a problem. We need Uber, Lyft and all of the small businesses that rely upon contract workers.
Perhaps the Biden Administration and Congress should focus on the issues that truly matter. Start with fiscal discipline and making the necessary difficult decisions to generate a budget surplus, reduce government debt and inflation, and ensure the integrity of our financial system. Then, dramatically accelerate private enterprise investment in the United States through clear, long-term policies for energy independence (all energy sources are required), physical airport/highway/seaport infrastructure, semiconductor and technology manufacturing, aerospace and defense technologies, education, child and elder care, and immigration/border security.
We cannot afford to have our leaders waste more time on bullshit and non-issues.
