Employer misclassification hurts millions of workers

Employer misclassification affects millions of workers and costs government agencies billions of dollars each year.

Employer misclassification of workers as independent contractors deprives millions of their rights  Employer misclassification affects millions of workers and costs government agencies billions of dollars each year. A new EPI report explores the widespread problem of employer misclassification of workers as independent contractors and analyzes California's recent law to fight employer misclassification in the context of current policy debates. Read the report here | Watch the webinar on the topic  The PRO Act's ABC test would derail misclassification The authors of the misclassification report recommend that federal and state policymakers adopt what is known as the ABC test, a strong, protective test for determining employee status. This includes passing the federal Protecting the Right to Organize (PRO) Act—which the U.S. House passed earlier this year—to establish the ABC test for purposes of organizing and collective bargaining rights. To find out more about the PRO Act read this explainer. Share the webinar: Cracking down on worker misclassification Share Tweet What we're talking about No civic freedom without economic security The first Juneteenth National Independence Day was recently celebrated as a federal holiday, and EPI Economist Kyle Moore took the occasion to share his thoughts on how important it is to not only protect voting rights but also protect workers' rights to organize.  Watch the video  Unions can reduce the public-sector pay gap  States where teachers, police, firefighters, and other local government workers have stronger collective bargaining rights and higher union membership have smaller gaps between these workers' pay and the pay of private-sector workers with similar educational attainment, age, state of residence, and hours worked.  Closing the public-sector pay gap especially helps Black workers and women, who are overrepresented among local government workers. Unions reduce inequality, promote social mobility, and advocate for better public services. Read the report  Will cutting federal unemployment benefits push job growth?  Getting workers in the right jobs, those that they'll stay in, is better for them and for the economy. And, in most industries, "there are still more unemployed people than there are job openings," David Cooper, deputy director of Economic Analysis and Research Network (EARN), said on NPR's Marketplace. One exception is leisure and hospitality, where businesses are struggling to hire.   But he says that's to be expected in a low-wage industry that's seeing a surge in demand.  "Even in the best of circumstances, it's going to take time for employers to staff up," Cooper said. Read or listen to the full interview  Recent webinars Cracking down on worker misclassification Watch our webinar exploring the problem of employer misclassification of workers as independent contractors and strategies for confronting it at the federal and state levels. Watch the webinar | Read the accompanying report  The global fight to derail worker misclassification—a transatlantic conversation Watch experts from the European Union and the U.S. Department of Labor discuss how the issues of employee status and misclassification are being approached by different EU countries and in the U.S. Watch the webinar Follow EPI on Instagram What we're reading The economy isn't going back to February 2020. Fundamental shifts have occurred.  The U.S. economy is emerging from the coronavirus pandemic with considerable speed but markedly transformed, as businesses and consumers struggle to adapt to a new landscape with higher prices, fewer workers, new innovations and a range of inconveniences. Read the article  Most Americans can be fired for no reason at any time, but a new law in New York could change that  Unlike in other wealthy countries, where bosses generally have to provide just cause for termination, at-will positions account for most U.S. jobs. Read the article  How do they say economic recovery? 'I quit.' Millions of workers who have voluntarily left their jobs recently, one of the most striking elements of the newly blazing-hot job market. According to the Labor Department, nearly four million people quit their jobs in April, the most on record, pushing the rate to 2.7 percent of those employed. Read the article  Share this newsletter: Employer misclassification hurts millions of workers Share Tweet Forward Donate to EPI Facebook Twitter epi.org View this email in your browser | Unsubscribe from this list