Lost among the din of Twitter feuds and even more serious reporting on tax reform, is attention to a tax bill about gig economy workers that could impact more than just tax policy.
The New Economy Works to Guarantee Independence and Growth Act (NEW GIG Act) essentially allows firms such as Uber to withhold income taxes for workers without that withholding being construed as evidence of an employee-employer relationship. Boston College of Law Professors Shu Yi Oei and Diane Ring perceptively point out that the NEW GIG Act will help define how gig economy workers are classified for purposes of laws that cover employees like anti-discrimination laws, unemployment insurance, wage and hour laws and possibly workers compensation laws. Their argument is that NEW GIG allows companies like Uber to define their workers as contractors within the tax code and that helps creates a presumption of independent contractor status.
Federal employment laws like the Fair Labor Standards Act depend on the so-called common law test distinguishing between contractors and employees. State wage and hour laws, fair employment laws and workers compensation laws may not always rely on those definitions. In cases where a state doesn’t use a common law test to distinguish between employees and contractors, the question would be whether NEW GIG would pre-empt those state laws. NEW GIG does not appear to have an express preemption clause, so courts could tend to uphold state employment laws that would conflict with NEW GIG. Lack of express pre-emption language in NEW GIG may also mean that courts wouldn’t pre-empt state employment laws that rely on the common law test distinguishing contractors from employees. If courts read NEW GIG as just a way for gig economy companies to collect income tax from their workers without creating an employee-employer relationship, then its impact could be muted on state laws and possibly on federal laws.
But Uber is not the only gig economy company and public statements by our elected officials don’t always match up with their actions. Even if NEW GIG is just a tax bill there is power in the perceptions and presumptions that would be created if NEW GIG were passed. Advocates for employee rights would be well advised to keep a close watch over the NEW GIG bills in the House and Senate.
The collapse of the Interstate Highway-35W bridge over the Mississippi River killed 13 people and highlighted the safety hazards related to poor infrastructure. But most drivers face a less dramatic, but no less dangerous, hazard:
According to www.pothole.info, nearly 1/3 of the 33,000 annual truck and auto fatalities are related to poor road conditions. At least 27 percent of the major roads in the United States have been rated to be in poor condition. Though potholes are regarded as a problem – with good reason – in cold-weather states like Nebraska and Iowa, the worst road conditions in the country are in the warm-weather areas like the Bay Area, southern California, and Tucson, Arizona.
Bumpy roads combined with poor suspension can even lead to back injuries. This is especially true for over-the-road-truck drivers who also face health problems from lack of sleep, lack of exercise, and poor diet due to the demands of trucking. Drivers for Crete Carrier Corporation, Shaffer Trucking, Werner and K&B Transportation usually must litigate their workers’ compensation claims in Nebraska. Fortunately, Nebraska would deem a back injury from driving over a pothole to be compensable, even if it were combined with a pre-existing condition. Other states have stricter causation standards that could preclude a driver from collecting benefits for such an injury.