Tag Archives: NLRB

Portability, The Gig Economy And Workers Compensation

Posted on June 1, 2017 by Jon Rehm

Changing employment laws to encourage so-called “portable benefits” is an idea that goes hand in hand with finding new ways to classify gig economy workers. These proposals are being pushed in a growing number of states. These proposals also enjoy support from Democrats and Republicans in Congress. These proposals could also radically alter workers’ compensation in the United States.

The idea of third classification of worker between employee and independent contractor is to give so-called “gig economy” workers some protections and benefits without employers having to bear the full costs of employment – including unemployment, workers’ compensation and health insurance. Sometimes this third class of workers is described as “dependent contractors.

Portable benefits are usually discussed in the context of contractors because traditionally benefits such as unemployment, workers’ compensation and health insurance have been provided by employers. So-called portable benefits, are detached from employers. The Affordable Care Act increased portability of health insurance benefits through the use of exchanges Portability of health insurance was touted as a way to help create new businesses because potential entrepreneurs were not tied to an employer for health insurance.

The idea of portable benefits and a new classification for gig employers is also touted as a way to reduce litigation against companies such as Uber for how they classify employees. But former National Labor Relations Board member Craig Becker pointed out that creating a new class of workers may actually create more litigation when employers try to re-classify employee as dependent contractors. Becker and others pointed out that this is what happened in Italy when Italy created a third class of worker that was neither employee nor independent contractor.

Becker and others point out that the drive to create a new class of workers is being driven by tech companies such as Uber as a way of reducing labor costs. The real risks of creating a new classification of workers is shared even by some who promote the sharing or gig economy. Gene Zaino, founder and CEO of MBO Partners, a firm that provides services to independent workers, stated that any new classification of independent workers should only include workers who earn more than $50 per hour. Under such a scheme lower-paid workers would still retain the benefits and protections of the employment relationship.

Though states are pondering portability and dependent contractor laws, there is a push for federal legislation so that laws can remain uniform across the country. Any federal push for portable benefits for so-called independent workers would clash with state-based workers’ compensation laws. Workers’ compensation is traditionally a state law concern because when workers’ compensation laws were enacted the power of the federal government to implement laws regarding workplace safety were limited. During the New Deal-era, that interpretation of the interstate commerce clause changed to allow broad regulation of the workplace.

Advocates for state-based workers’ compensation laws likely have little constitutional grounds to overturn any federal legislation that would substitute “portable benefits” for so-called “independent workers” for state-based workers’ compensation benefits. Some critics who argue, correctly, that many state-based laws inadequately compensate injured workers could also be open to or even welcome a federal substitute for insufficient state workers’ compensation laws.

Why an Obscure Securities Law Case Could Affect SSDI

Posted on January 23, 2017 by Jon Rehm

Social Security Disability Insurance (SSDI) cases are largely decided by administrative law judges (ALJs). A decision questioning the role of ALJs in another area of the law could cause some major complications for SSDI applicants and SSDI beneficiaries.

The 10^th U.S. Circuit Court of Appeals recently set aside a conviction for securities fraud by the Securities and Exchange Commission (SEC) because the ALJ who decided the case should have been appointed under the Appointments Clause rather than hired by the SEC. The 10^th Circuit’s decision directly conflicts with a recent decision made by the District of Columbia Circuit Court of Appeals, which means the U.S. Supreme Court could take up the issue.

This matters to SSDI applicants, their attorneys and even present SSDI beneficiaries because the vast majority of administrative law judges, roughly 1,200 of 1,400, have been hired by the Social Security Administration to hear Social Security Disability appeals. Similar to ALJs from the SEC, ALJs who hear SSDI appeals are hired on merit and are federal employees.

If the U.S. Supreme Court followed the recent 10^th Circuit decision and applied it to ALJs who heard Social Security Disability appeals, at least 1,200 ALJs would have to be appointed by the president and confirmed by the Senate. This could lead to further delays and uncertainty related to SSDI appeals. If the 10^th Circuit decision were applied to SSDI judges, it is uncertain as to whether awards of disability would still be valid if they were made by unconstitutionally chosen ALJs. In 2014, in National Labor Relations Board v. Noel Canning, the Supreme Court held that the NLRB’s decision made by commissioners who were appointed by constitutionally invalid recess appointments was invalid.

The Social Security Administration has recently moved to abolish the treating physician rule in an effort to decrease claim payments. Uncertainty over whether the awards of SSDI benefits are constitutional would add additional hurdles to those needing SSDI benefits. If you are applying for Social Security Disability or thinking about it, contact an experienced attorney. Also, contact your lawmakers to express your concerns about the SSDI system to them.

Nebraska Employers Should Be Required to Post Information about Workers’ Compensation Benefits

Posted on July 14, 2016 by Jon Rehm

The federal government requires that employers post summaries of rights under laws like the Fair Labor Standards Act (FLSA), the Occupational Safety and Health Act (OSH) and anti-discrimination laws like Title VII at their worksites. Most states, including Nebraska, have similar requirements. But Nebraska is among a minority of states that does not require employers to post notices about an employee’s rights under our state’s workers’ compensation act. This lawyer believes that this practice needs to change in Nebraska.

My informal inspection of worksites in Nebraska has shown me that when anything is posted about workers’ compensation, it is usually a poster about treating with an occupational medicine clinic if a person is hurt at work. The problem is that if you are hurt on the job in Nebraska, you can pick your own doctor. If an employee doesn’t exercise the right to pick their own doctor, they are taking the risk of undercutting their workers’ compensation claim.

Illinois has a good poster that explains an injured employee’s rights and responsibilities under their workers’ compensation act. I particularly like the Illinois poster because it tells employees that 1) they have some right to pick their own doctor and 2) they can’t be discriminated against for filing a claim. To me, the Illinois poster reads a lot of what an attorney like me would tell a prospective client who called with a work injury claim.

But not all posters are created equal. I think Kansas provides an example of a poster that doesn’t really help employees. Though the poster is bilingual, it doesn’t really tell employees anything about their rights and responsibilities besides what they need to do to file a report of injury. The poster also encourages workers to call their employer’s workers’ compensation insurer or claims administrator for help. This is problematic, because employees and employers don’t always have the same interests in a workers’ compensation claim.

My view is that readily available, accurate and unbiased information is good for injured employees to protect their rights under any state’s workers’ compensation act. I think posters like the Illinois poster meet these qualifications. Of course, detractors might say that employees can readily find information on the internet, so posters are a relic of the 20th century.

In response, I would say that information off the internet isn’t always reliable. Part of the reason has to do with how search engines work. Marketers and lawyers try to game the system so when an injured worker is looking for a lawyer, those firms always show up in searches. Frankly, that’s part of the reason I write blog posts like the one you are reading now. Even though I try my best to explain the law accurately, I have a slant toward representing employees, so I can’t claim to be unbiased.

But a good poster or summary of rights is about as close to unbiased as you can get. Employers also have some fear of displaying unbiased information about workplace rights in the workplace. Some employers fought a poster from the National Labor Relations Board (NLRB) informing employees about their right to form a union.

Knowledge is power, which is why I believe all Nebraska employees should have complete, unbiased and clear information about their rights under the Nebraska Workers’ Compensation Act readily available in their workplace.

Workers' Compensation Watch

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Tag Archives: NLRB

Portability, The Gig Economy And Workers Compensation

Nebraska Employers Should Be Required to Post Information about Workers’ Compensation Benefits

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