The Business Model Of "No Permanent Jobs" Must Be Reversed.

[TheMastersNemesis]

Even though the economy is supposedly humming along more and more permanent jobs are being converted to contract, temporary or contingency jobs. That is why wages are not rising and workers are not moving forward. And those jobs not being converted are outsourced, off shored or robotized. As a result permanent jobs with benefits are decreasing at an alarming rate.

The business model today is a "task rabbit" or "uber" economy. And that trend is the death of workers rights.

To make matters worse more and more government jobs and well paid service jobs are being contracted and subcontracted to domestic and even foreign companies. These practices end job security and severely reduce pay and benefits. Even public services like police, fire and emergency responders are under the same threat.

The commons or public services are also being threatened with privatization and selling off to private corporations. And it all comes under the banner of "business always does it better".

All of these strategies are aimed at avoiding federal taxes and escaping contributions to pensions, Medicare and Social Security. In the end the idea is to erode the employment economy into a "work at will" and "you are on your own" labor environment.

Unless there is radical change and a restoration of federal regulation and oversight labor conditions in the US will return to pre 20th century model.

The "new business model" is bad news for workers and ends up being a "feudal system" where the haves rule without accountability over working people.

[Octafish]

1. TPP will fix that.

Soon there won't be any jobs, so no problem.

What we need are Democrats who know how to use the powers of government to build a better nation and a brighter future, like in the New Deal-New Frontier-Great Society mold.

[Justice]

2. Department of Labor swiftly moving in that direction. Much harder to classify as independent

contractor. Many states are also doing same.

[TheMastersNemesis]

4. Such Action Would Be A Great Start.

Contracting should be narrowly defined by federal law with strong enforcement. Plus any contracting should require payment of ALL federal and state taxes are part of the contract. That includes funds forwarded to Social Security and Medicare as well. Uber and task rabbit jobs should be very tightly regulated with mandatory background checks.

Only the force of federal law will control abuses.

[R.A. Ganoush]

8. It currently is narrowly defined with strong enforcement

Since 2009, the combined amounts of fines and penalties between the IRS, US DOL, and state DOL's is several trillion dollars.

[former9thward]

9. What utter nonsense!

I am sure you will link to your absurd statement "Since 2009, the combined amounts of fines and penalties between the IRS, US DOL, and state DOL's is several trillion dollars. " NOT.

[R.A. Ganoush]

10. Here is a good place to start from 2015

http://www.pepperlaw.com/publications/the-2015-white-paper-on-independent-contractor-misclassification-how-companies-can-minimize-the-risks-2015-04-27/

I'll see if I can get you a total of violations and penalties from another source, although I may not be able to get to it until tomorrow. Problem is there are so many agencies that have their own standards it may be tough to find a comprehensive number. Let me see what I can do.

[former9thward]

14. None of these links

has any allegation that there have been "several trillion dollars" in fines, etc.

[R.A. Ganoush]

18. I know that, it's why I said it may take

Me til tomorrow to find the cite.

Are you going to be as snarky once I do?

[R.A. Ganoush]

12. Heres a link from the US DOL (press release) on their efforts

Keeping in mind that this doesn't include the IRS and individual state DOL's

https://www.dol.gov/whd/workers/Misclassification/pressrelease.htm

And this link is from the NY DOL for 2014.

https://www.labor.ny.gov/agencyinfo/PDFs/Misclassification-Task-Force-Report-2-1-2015.pdf

In addition, the IRS has their QETP (Questionable Employment Tax Practices) program, and Memorandum of Understanding with 37 states to share information and in 2014 they launched the SS-8 program, which allows employees to request a review of their IC status by the IRS.

So there's that...

[NaturalHigh]

3. Preach!

K and R!

[meaculpa2011]

5. I am an independent contractor because I choose...

to be an independent contractor.

It was a choice I made 35 years ago and I have never regretted my decision.

I am the sole proprietor of a business which employs one person--me.

I provide my own healthcare insurance, I fund my own retirement and I pay both the employee and employer taxes for Medicare and Social Security. I have supported a home and put my two kids through school. There are millions like me.

I understand that there are many people who would be uncomfortable with the uncertainty of my arrangement, but in the past, attempts to address this type of situation have had the unintended consequence of making it very difficult to do business.

I never work on my clients' premises, I set my own hours, arrange my own working environment and set my own fees, all to maintain my status as a freelancer.

However, the state of New York on more than one occasion nearly forced me to relocate in order to maintain my independent status.

As I said, there are millions like me.

[R.A. Ganoush]

6. Greetings fellow NY Sole Propietor!

I love the freedom and flexibility it gives me, although it does take a bit of self-discipline. I have about 4 dozen companies I provide consulting services to in my area, some on-site each week (although none for more than 6 hours, most 2 - 3), while the others are more of a call me when you need me type of arrangement. Provides a generous living on my own terms. Took a while to get here but I'll never work FT for anyone but myself again.

I got to spend today kayaking while I answered a handful of client calls - wouldn't trade it for the world.

[meaculpa2011]

15. Worked from 4am to 9am this morning...

then transmitted the manuscript at 9:15 and went fishing.

I coached both of my kids in every sport, went to every parent-teacher conference, field day, glee club performance and band concert.

They're now adults and were lucky enough to have Mom AND Dad with them through most of their childhood. I did a lot of traveling, but was home 90% of the time.

I'm now 65 and I plan to work until they nail the lid shut.

Politicians who want to make it harder for freelancers and independent contractors beware.

There are millions of us.

[pampango]

7. Well said. Progressive countries (and there are many) don't operate with "no permanent jobs".

It has been done here and it is being done elsewhere.

[TheMastersNemesis]

11. Contract Jobs As Labor Policy Unworkable For Most Employees.

Independent contractor jobs that work long term are more an exception rather than the rule. I am sure contracting works for certain kinds of work. The trouble is contracting is being used as a way to exploit workers for profit alone.

You are only as good as your last contract and if you have a medical problem and cannot work it can be a real problem. I have not seen contracting work for most workers. If it is high paid fine. But most contracting jobs are low pay and every insecure.

[leftstreet]

13. DURec

[smirkymonkey]

16. K&R

[TheMastersNemesis]

17. The Contract Employment Scheme Hatched In Early 1980's

The idea of having "employee free" businesses was hatched in early 1980's when Reagan announced the "service economy". Look at where we are now. We have that essentially low paid economy. The idea of contracting began to get its momentum with the growth of "temporary agencies". Eventually "contracting" removed even these agencies who paid Social Security and Medicare taxes.

Employees have been sold on the idea of "being their own boss" except they aren't. The new model is chaos for working people because it creates instability. And it has social consequences.

There was actually an editorial in the Denver Post during that time about corporations, business and industry evolving into "employee free" organizations with "ONLY" contract temp employees. New workers would be like actors looking for a new gig full time.

Look at how many actors make it really big compared to all the actors seeking steady employment. Very few really make it big into old age. Many are done by 45.

So make your stake by 40 and you might be ok. In the stock market.