Friday, June 25, 2021

Chart of the Week: Learning from California to end worker misclassification.

reaDER,
 

Millions of workers are currently misclassified as independent contractors. Some states are embracing stricter standards to define an employee.
 
A recent EPI report examines California's efforts to fight employer misclassification by embracing the ABC test, a strong standard used by many states to determine employee status, and explains why the ABC test is the right standard federal and state policymakers should adopt to crack down on misclassification.
 
Why it matters: Misclassified workers are deprived of rights and protections under federal and state labor and employment laws, including wage and hour protections, anti-discrimination protections, workers' compensation, unemployment benefits, and the right to organize. Misclassification also costs government agencies billions of dollars each year.
 
This chart breaks down the differences between what employees and independent contractors get under the law. Please read EPI's report, then share this chart on social media.

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Additional resources:
Recently, EPI hosted two webinars examining efforts to crack down on misclassification, both domestically and globally.
 
Cracking down on worker misclassification: State and federal actions to deter employers from the practice hurting millions of employees
June 17, 2021
The global right to derail worker misclassification—a transatlantic conversation
June 22, 2021

EPI researchers have been writing about the problem of misclassification for years as part of our ongoing labor market analysis. In addition to promoting policies to protect workers' safety and interests, including strengthening collective bargaining through the Protecting the Right to Organize (PRO) Act, EPI experts also regularly function as a watchdog to identify where existing federal and state regulations are failing workers and what we can do to fix those regulations.

This oversight requires extensive time and resources to perform. We rely on the support of our donors to make it possible. reaDER, can you contribute $5 to help EPI continue our vital role as a watchdog to monitor and expose where workers are getting a raw deal while putting forward policy solutions like adopting the ABC test to create strong guidelines for worker classification?
 
Thank you for continuing to be an active reader and helping EPI by sharing our research and resources with your network. We appreciate everything you do for our collective movement.
 
Eve Tahmincioglu
Director of Communications, Economic Policy Institute
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