Opinion: You Call It the Gig Economy, but California Calls It “Feudalism”

From today’s New York Times:

Labor leaders cheered in the balcony and lawmakers embraced on the floor of the California Senate on Tuesday as it passed a landmark measure that defines employees, a move that could increase wages and benefits for hundreds of thousands of struggling workers.

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But the bill is as much a starting point as an endgame: It will drive a national debate over how to reshape labor laws fashioned in the industrial era of the 1930s to fit a 21st-century service and knowledge economy.

With the measure, which Gov. Gavin Newsom says he will sign, California will lead in a shift that will likely redefine the roles of governments, unions and worker organizations. Just as federal labor laws were promulgated to help the country recover from the Depression, the imperative to extend basic guarantees like a minimum wage stems from the staggering income inequality in California, the state with the highest poverty rate in the country.

The new paradigms will need to fit not the relatively stable industrial work force of the last century but a gig economy in which workers are increasingly likely to hold multiple jobs or report to no workplace at all. California lawmakers took a major step in constructing the foundation of such a model with the new measure, which presumes workers are employees, entitled to all concomitant protections and benefits, unless they meet strict criteria as truly independent contractors.

Read the complete article here.

Sweeping bill rewriting California employment law sent to Gov. Newsom

From today’s Los Angeles Times:

California lawmakers rewrote the rules of employment across a wide swath of industries Wednesday in legislation that could grant hundreds of thousands of workers new job benefits and pay guarantees.

After vigorous debates over what occupations should be exempted, Assembly Bill 5, which curbs businesses’ use of independent contractors, gained final approval in the state Senate and the Assembly and was sent to Gov. Gavin Newsom, who has pledged his support.

The 6,700-word bill is one of the most controversial of the year. It could upend the relationship between workers and bosses across businesses as varied as ride-hailing tech giantsconstruction, healthcare, truckingjanitorial servicesnail salonsadult entertainment, commercial fishing and newspapers.

The message of the legislation, said its author, Assemblywoman Lorena Gonzalez (D-San Diego), is “we will not in good conscience allow free-riding businesses to continue to pass their own business costs on to taxpayers and workers. It’s our job to look out for working men and women, not Wall Street and their get-rich-quick IPOs.”

Contractors, including many in multibillion-dollar technology companies, are not covered by laws guaranteeing a minimum wage, overtime pay, sick leave, family leave, unemployment and disability insurance, workers’ compensation and protection against discrimination or sexual harassment. Nor do businesses pay into Social Security or Medicare for contractors.

After months of lobbying by the California Chamber of Commerce and a score of trade associations, AB 5 exempted a host of occupations — but not platform-based gig giants Uber, Lyft, DoorDash, Postmates and others that mounted a powerful push to avoid reclassifying their workers as employees with labor law protections.

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A California bill that would ban forced arbitration heads to Gov. Newsom

From today’s Los Angeles Times:

When companies in California tell job candidates they have to give up their right to sue the company for most disputes, a bill headed to Gov. Gavin Newsom’s desk would let the candidates decline without fear of losing their job offer.

The bill is the latest effort by state governments to limit private companies from imposing forced arbitration agreements, whose surge in popularity has contributed to the difficulty of workers suing their bosses for sexual harassment in the era of #MeToo.

Federal law and some U.S. Supreme Court decisions do not let state governments ban these arbitration agreements. Supporters argue that the bill in California would not ban arbitration agreements, but make them optional: Employees could sign them, but they may not be punished for declining to. The bill would not affect existing arbitration agreements and would apply only to people hired after Jan. 1, 2020.

Still, Republicans and the state’s business groups said the bill is illegal and would probably be challenged in court. The state Senate voted Thursday to approve the bill.

The Economic Policy Institute says more than 67% of all employers in California require workers to sign these arbitration agreements. Companies like these agreements because arbitration costs less than going to court and moves faster. Labor groups argue that arbitration puts employees at a disadvantage because the employees don’t have an attorney and are subject to the ruling of an arbitrator who is often selected and paid for by the company.

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Astronauts Celebrate Labor Day 2019 On International Space Station

From Space.com Online News:

American astronauts on the International Space Station are starting this week with a day off today (Sept. 2) to mark the U.S. Labor Day holiday on Earth. 

NASA astronauts Nick Hague, Christina Koch and Andrew Morgan have some extra time to call friends and loved ones, or simply relax and look down on Earth through the window. They just might spend time observing the massive Hurricane Dorian from space, like one of their fellow crewmates. 

“Even astronauts need to chill,” Koch wrote on Twitter today. “Spending this Labor Day weekend reading and relaxing by my favorite window. After a long week packed with science, a spacewalk, and a re-docking, it’’ important to recharge your batteries to keep focused on bringing your best.”

Hague, Koch and Morgan make up half of the space station’s current six-person Expedition 60 crew. Rounding out the team are Russian cosmonaut Alexey Ovchinin (the station’s commander), cosmonaut Alexander Skvortsov and European Space Agency astronaut Luca Parmitano. It is Parmitano who has been capturing daily photos of Hurricane Dorian from the space station

Hague, Koch and Ovchinin launched to the station in March of this year. While Hague and Ovchinin will return to Earth in October Koch is just over halfway through a nearly one-year mission to the space station, the first of its kind for a female astronaut. She’ll return to Earth in February 2020, NASA officials have said. 

“Happy Labor Day from our astronauts celebrating 250 miles above us in the International Space Station, where they perform important scientific experiments that help improve life on Earth and page the way for our Artemis missions to the Moon and beyond,” NASA wrote in a Twitter message today. NASA’s Artemis program aims to return astronauts to the moon by 2024. 

Morgan, Skvortsov and Parmitano launched to the station on July 20. They’ll return to Earth in December of this year. 

Read the complete article here.

Robocall Bill Wins Approval in the House

From Consumer Reports Online:

A crackdown on robocalls moved one step closer Wednesday after the House voted 429-3 to increase consumer protections against the unsolicited and annoying phone calls.

The bill, known as the Stopping Bad Robocalls Act, builds on the TRACED Act passed by the Senate in May. The House and the Senate now need to reconcile the two bills before sending the legislation to the White House for the President’s signature. That’s expected to happen in the fall.

In addition to giving regulators stronger enforcement tools, the House bill would require phone carriers to implement call identification technology and mandate that the Federal Communications Commission report to Congress annually on the state of robocalls.

On Tuesday, 80 consumer rights groups, including Consumer Reports and the National Consumer Law Center, sent a letter to Congress urging passage of the bill. The wireless industry trade group CTIA also supports it.

To date, there have been 29 billion robocalls in 2019, according to YouMail, a robocall blocking and tracking firm. “That’s nearly 90 calls per person in the U.S.,” said YouMail CEO Alex Quilici.

The blocking and tracking firm Truecaller estimates that consumers lost $10.5 billion to phone scams in 2018.

Read the complete article here.

Machines May Not Take Your Job, but One Could Become Your Boss

From today’s New York Times:

When Conor Sprouls, a customer service representative in the call center of the insurance giant MetLife talks to a customer over the phone, he keeps one eye on the bottom-right corner of his screen. There, in a little blue box, A.I. tells him how he’s doing.

Talking too fast? The program flashes an icon of a speedometer, indicating that he should slow down.

Sound sleepy? The software displays an “energy cue,” with a picture of a coffee cup.

Not empathetic enough? A heart icon pops up.

For decades, people have fearfully imagined armies of hyper-efficient robots invading offices and factories, gobbling up jobs once done by humans. But in all of the worry about the potential of artificial intelligence to replace rank-and-file workers, we may have overlooked the possibility it will replace the bosses, too.

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Comcast faces $9.1 million penalty for violating consumer protection laws

From today’s Seattle Times:

Comcast violated Washington’s Consumer Protection Act by charging nearly 31,000 residents without their knowledge for a service-protection plan, a King County Superior Court judge ruled Thursday.

But the order by Judge Timothy Bradshaw also rejected parts of what started as a $100 million lawsuit alleging “deceptive” practices surrounding repair fees and credit checks brought against the Philadelphia-based company by state Attorney General Bob Ferguson in 2016.

Ferguson in late 2017 expanded that complaint to include allegations about the service-protection plans. Those plans — which at that time cost $5.99 per month — are intended to cover repairs for customer-owned wiring related to Xfinity voice, TV and internet service.

In Thursday’s order, Bradshaw imposed $9.1 million in civil penalties against Comcast. He directed the company to pay additional money in restitution to the affected customers within 60 days, according to a news release from the Attorney General’s Office.

The ruling found that Comcast had signed up 30,946 Washington residents to the plan without their consent, according to the news release. Additionally, the company did not reveal the true cost of the plan to another 18,660 state residents.

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He Has Driven for Uber Since 2012 and He Makes About $40,000 a Year

From today’s New York Times:

Uber’s public stock offering next month will make a bunch of people remarkably rich. Peter Ashlock is not one of them, although he has toiled for the ride-hailing company almost since the beginning.

Mr. Ashlock, who will be 71 next week, has racked up more than 25,000 trips as an Uber driver since 2012. His Nissan Altima has 218,000 miles on it — nearly the distance to the moon. His passengers rate him 4.93 out of five stars. His favorite review: “Dude drove like a cabdriver.”

While he is an integral part of Uber’s success, Mr. Ashlock is barely getting by. His 2018 tax return will show an adjusted gross income in the neighborhood of $40,000, better than 2016 and 2017. But he has maxed out his $3,200 credit limit at the local Midas car-repair shop and needs to come up with $5,000 to pay his taxes. He has Social Security but no savings to buy a new car that will let him keep working.

Silicon Valley has always been a lottery where immense wealth is secured by a few while everyone else must hope for better luck some other time. Rarely, however, has the disparity been on such stark display as with Uber. Its stock market value is expected to be about $100 billion, which would make it one of the richest Silicon Valley public offerings of all time.

Among those with something to celebrate: Uber’s founders, the Japanese conglomerate SoftBank, the elite venture capitalists Benchmark and Google’s GV, Saudi Arabia’s Public Investment Fund and the mutual fund giant Fidelity. Some have already cashed in. Travis Kalanick, Uber’s co-founder and chief executive until he was forced out after a series of scandals, reaped $1.4 billion by selling fewer than a third of his shares to private investors in 2017.

As independent contractors, drivers are not eligible for employee benefits like paid vacations or stock options. Uber said Thursday that it would offer bonuses of $100 to $10,000 to long-serving drivers. Its chief competitor, Lyft, did the same when it went public in March.

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The Gig 101: The Con of the Side Hustle

From today’s New York Times:

An attractive woman behind the wheel of a gray car says to the camera, “These days anyone can have a side hustle.” She then whisks off to the gym, for her other job as a personal trainer, beaming as she goes from one gig to another. This ad for the ride-share company Uber seeks to entice new drivers to join their ranks by using the “side hustle” come-on. The company isn’t alone.

Similarly laborious “side hustles” are celebrated in popular media and advertising, from self-help articles and other web content that exhort us to, say, work for a design studio part-time or sell CBD oil (great as a side hustle for moms, supposedly). Even pastors can use a side hustle, according to one evangelical blogger.

During tax season, you will also find filing suggestions for side hustlers. (Report all of your income! Deduct expenses!)

The truth is, working multiple gigs creates complications when you do your taxes. Compared with those with salaried jobs, who pay their taxes seamlessly through withholding, for side hustlers “the process will be a lot messier,” according to Steven Dean, the faculty director of the Graduate Tax Program at New York University Law School. You have to estimate and pay taxes on your own, he notes, and your expenses may not be reimbursed by your employer. In other words, paying quarterly tax estimates gives workers with side hustles yet another side hustle — being their own accountant, although this gig doesn’t even pay.

Nevertheless, this nouveau moonlighting continues to be exalted ­as cool, empowering or freeing. This mantra is false: Side hustles are not simply a new version of working as a “wage slave” so that we can do what we love in our off hours. Instead, far more often, people take on second or third side hustles because of wage stagnation or low pay at their full-time jobs.

Read the complete article here.

Facebook Halts Advertising Targeting Cited in Bias Complaints and Lawsuits

From today’s New York Times:

After years of criticism, Facebook announced on Tuesday that it would stop allowing advertisers in key categories to show their messages only to people of a certain race, gender or age group.

The company said that anyone advertising housing, jobs or credit — three areas where federal law prohibits discrimination in ads — would no longer have the option of explicitly aiming ads at people on the basis of those characteristics.

The changes are part of a settlement with groups that have sued Facebook over these practices in recent years, including the American Civil Liberties Union, the National Fair Housing Alliance and the Communications Workers of America. They also cover advertising on Instagram and Messenger, which Facebook owns.

“We think this settlement is historic and will go a long way toward making sure that these types of discriminatory practices can’t happen,” Sheryl Sandberg, the company’s chief operating officer, said in an interview.

The company said it planned to carry out the changes by the end of the year and would pay less than $5 million to settle five lawsuits brought by the groups.

Read the complete article here.