Teamsters applaud NLRB ruling on worker misclassification

Posted by National Alliance for Fair Contracting on

Matt McQuaid
June 15, 2023

Teamsters General President Sean M. O’Brien issued the following statement regarding the ruling from the National Labor Relations Board (NLRB) on The Atlanta Opera, Inc., which revives an Obama-era rule that makes it easier for workers to organize and join unions:

“The Teamsters Union is pleased that the NLRB has taken a critical step in putting power back into the hands of workers and reversing an egregious rule that made it easier for corporations to misclassify hardworking men and women.

“When workers are misclassified as ‘independent contractors,’ they are deprived of the opportunity to secure the higher wages, better benefits, strong workplace protections, and job security that comes with a union contract.

“While most only associate misclassification with so-called ‘gig’ workers who work for ridesharing apps like Uber and Lyft, workers in nearly every industry have been under attack by corrupt employers and politicians that want to strip them of their employee status and the legal protections that follow.

“While we are glad to see the NLRB return power to workers, let us not forget that this should have never been the law of the land. Misclassification of employment status is the latest tool that employers have deployed in their fight against workers.

“The new ruling from the NLRB makes it more difficult for employers to deceptively misclassify workers and avoid paying employee-related expenses, like unemployment insurance, workers’ compensation, and Social Security.

“The Teamsters remain committed to helping workers across the country raise their voices and get their fair share. We look forward to continuing to fight alongside pro-worker officials at the NLRB, Department of Labor, in Congress, and in state legislatures to protect workers’ rights.”

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Justice Department and National Labor Relations Board Announce Partnership to Protect Workers

Posted by National Alliance for Fair Contracting on

Department of Justice – Office of Public Affairs
Tuesday, July 26, 2022

Agencies Will Enhance Enforcement Efforts Through Greater Coordination and Information Sharing, Cross-Agency Training and Outreach

The Justice Department’s Antitrust Division and the National Labor Relations Board (NLRB) signed a memorandum of understanding (MOU) today to strengthen the partnership between the two agencies to better protect competitive labor markets and ensure that workers are able to freely exercise their rights under the labor laws. By strengthening their partnership, the agencies also achieve the objectives of the President’s Executive Order on Promoting Competition in the American Economy just days after the Order’s one-year anniversary.

“Protecting competition in labor markets is fundamental to the ability of workers to earn just rewards for their work, to live out the American dream, and to provide for their families,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “By cooperating more closely with our colleagues in the NLRB, we can share information on potential violations of the antitrust and labor laws, collaborate on new policies and ensure that workers are protected from collusion and unlawful employer behavior. As the department noted in the amicus brief we submitted in the NLRB’s recent Atlanta Opera matter, we support the Board’s ongoing efforts to update its guidance to ensure that workers are properly classified under the labor laws. Protecting the right of workers to earn a fair wage is core to the work of both our agencies, and it will continue to receive extraordinary vigilance from the Antitrust Division.”

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U.S. Labor Agencies Strike Deal to Share Enforcement Information

Posted by National Alliance for Fair Contracting on

Jan. 6, 2022
Bloomberg Law

  • Agreement involves Labor Department, federal labor board
  • Effort targets cases involving misclassification, retaliation

The U.S. Department of Labor’s wage regulator and the National Labor Relations Board have struck an agreement to collaborate on investigations and share information on potential violations of law, specifically targeting independent contractor misclassification and retaliation against workers.

Their new memorandum of understanding, made public Thursday, will create a formal referral process for violations of federal labor and employment laws, making it easier for the government to pursue employers who have breached laws enforced by both agencies, Jessica Looman, acting administrator of the DOL’s Wage and Hour Division, said in an exclusive interview.

“This MOU allows us to have that formal referral process back and forth between the two agencies, so that we can help the worker get to the place where they need to be and have their rights enforced, as opposed to relying on the worker to have to try to navigate the government system on their own,” Looman said.

The agreement will take effect immediately at the WHD. Looman said the agency will review its current investigations for cases that may have potential overlap with the federal labor board.

The NLRB and the WHD will work together to create a system to share information in an effort to “maximize” and “improve” enforcement, according to the agreement, which was signed in early December.

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bill-would-allow-cities-counties-to-opt-out-of-prevailing-wage

AG Healey Leads Multistate Effort to Curb Misclassification of Workers

Posted by National Alliance for Fair Contracting on

FOR IMMEDIATE RELEASE: 4/30/2018
Office of Attorney General Maura Healey
The Attorney General’s Fair Labor Division

The following are excerpts from the release:

Attorney General Maura Healey today led a coalition of 12 state attorneys
general in filing a brief to the National Labor Relations Board in support of a decision that
misclassification of employees as independent contractors constitutes an unfair labor practice in violation of the National Labor Relations Act.

…

“Employers that misclassify their employees cheat local and state governments from
collecting millions in taxes each year and create an unfair playing field for others,” said AG Healey. “I urge the National Labor Relations Board to uphold the decision in this case.”

According to the brief, misclassification is an increasingly common way for employers
to avoid their legal obligations to employees and to unfairly compete in the marketplace.
When employers misclassify their workers as independent contractors, it is significantly
harder for those employees to assert their workplace rights, including protections from wage theft, harassment and discrimination. Misclassified workers are also denied Occupational Health and Safety Act protections, and are unable to form unions, collectively bargain for wages and benefits, or join in concerted efforts to improve conditions in their workplace without fear of reprisal from employers.

Employers that misclassify their workers are also able to avoid paying unemployment
insurance and contributing to the worker’s compensation system, which poses significant cost in terms of lost revenue for state, local, and federal government. According to two studies cited in the brief, Massachusetts loses an estimated $259 million to $278 million annually, $87 million of which is in unpaid unemployment insurance taxes, because of misclassification. In 2015, the Massachusetts Council on the Underground Economy reported recoveries of more than $50 million from employers who misclassified their employees from 2013 to 2015.

…

The coalition of state attorneys general submitted today’s brief at the invitation of the National Labor Relations Board. Massachusetts and Pennsylvania led today’s brief, joined by Connecticut, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Virginia and Washington.

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NLRB Rolls Out Labor Law App

Posted by National Alliance for Fair Contracting on

By Melanie Trottman

The National Labor Relations Board is marking Labor Day with a mobile-phone app to inform workers, employers and unions about their rights under the decades-old labor law.

“The promise of the law can only be fulfilled when employers and employees understand their rights and obligations,” NLRB Chairman Mark Pearce said in a statement.  The agency received more than 82,000 public inquiries last year about workplace issues, and “this app can help provide the answers,” he said.