We’ve curated some of the topics trending on the web regarding independent contractors over the last month.
Ongoing Strikes
It’s not just the Writer’s Guild now. The United Auto Workers are striking against the “Big Three” automakers: Ford, General Motors, and Stellantis (the maker of Chrysler). Economists predict this strike could have widespread effects across the economy. Ford and GM have already sent production workers home in temporary layoffs without pay. If the strike continues for eight to ten weeks, companies who rely on the auto industry, such as parts manufacturers, may start to feel the ripple effects. The same buffer period likely applies to consumers as well. If you were thinking about buying a Ford, GM, or Stellantis in the next two months, it may be prudent to make the move sooner rather than later, as there may be a shortage if the strike persists. Hopefully the UAW and the Big Three will come to a fair agreement soon.
If the writer’s strike is any predictor of how long the UAW will be on strike, they have a long way to go! The AP reports that contract negotiations are set to resume next week after four-and-a-half months of striking. Last week, Drew Barrymore faced intense criticism for trying to resume The Drew Barrymore Show, which relies on WGA writers, during the strike. Backlash was so severe that the National Book Awards retracted their invitation for her to host the upcoming award ceremony. Barrymore has since changed her mind about starting the show before the strike concludes.
Classification Battles
The Department of Labor (DOL) received over 54,000 comments on its proposed rule to more clearly define the line between an independent contractor and an employee. Back in June, the DOL requested a 120-day delay to review the comments and make its ruling. As long as they don’t request another delay, that means we should have the answer no later than October.
The issue is complex, and many gig workers fear that too strict-classification rules may make their freelance jobs more scarce. That being said, the rule is aimed at not letting big businesses skirt around offering benefits to what essentially are full-time employees. Some critics of this rule argue that if the company is forced into offering a benefits package, the job may altogether cease to exist and/or make contracting opportunities scarce.
The comments the DOL is sifting through are definitely of mixed opinions, even from the independent contractors the proposed ruling is intending to help. Many independent contractors agree that each case is different and a one-size-fits-all ruling has the potential to do more harm than good.
The Society for Human Resource Management (SHRM) has a good breakdown of the current rule, the proposed changes, and the SHRM’s stance on the issue.
Student Loan Forgiveness
Since our last edition of “Read What’s Hot Around the Web” in June, the Supreme Court struck down the student loan forgiveness program. But if you were one of the people affected by this decision, all hope isn’t lost. The SAVE plan is an income-driven repayment designed to help ease the burden of student loans. People who make under $15/hour won’t have to make monthly payments at all, and those who exceed that hourly wage will see their payments lowered. So far, over 4 million people have signed up nationwide.
More information is available at StudentAid.gov/save. It only takes 10 minutes to sign up!