Labor News & Commentary August 19, 2024 DOL defends its new independent contractor rule in five separate lawsuits & more

https://onlabor.org/august-19-2024/

By Elyse Weissberger

In today’s news and commentary, DOL defends its new independent contractor rule in five separate lawsuits brought in courts around the country, AT&T workers across the Southeast are striking after alleged unfair labor practice during contract negotiations, and UAW President Shawn Fain is slated to speak tonight at the opening of the Democratic National Convention.

Business groups, trucking companies, and freelance writers are challenging a recent Department of Labor rule changing how a worker is classified as employee or independent contractor under the Fair Labor Standards Act. Suits have been brought in courts in Georgia, Louisiana, New Mexico, Tennessee, and Texas. The challengers argue that the new rule makes it harder for companies to classify workers as contractors and that the rule was born out of “political flip-flopping.” Released in March of this year, the rule employs a six-factor, non-exhaustive test to determine the degree of control a worker has over their work. The test, known as the “economic realities” test, differs from a Trump-era independent contractor rule in that it does not assign different weights to the factors considered. In four of the five suits, the DOL argues that the plaintiffs have not actually been harmed by the rule and therefore lack standing. At the time the rule was released, Uber’s head of federal affairs stated that the rule would not “materially change the law under which [the company] operates, and won’t impact the classification of [Uber drivers].” The Department has asked the court to dismiss the cases or rule quickly in their favor.

Over 17,000 AT&T workers walked out on strike last Friday to protest alleged unfair labor practices committed during contract negotiations. The workers, represented by the Communications Workers of America (CWA), are technicians, customer service representatives, and installation workers from nine states across the southeast – Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. The Union filed Unfair Labor Practice charges with the National Labor Relations Board for alleged bad faith bargaining, including claims that company representatives could not explain their own bargaining proposals and seemed not to have actual bargaining authority. AT&T denied these charges and insists it is eager to reach agreement. The company assured customers that the strike would not result in service disruptions. The previous contract between CWA and AT&T Southeast expired on August 3, and the Union is seeking wage increases and scheduling improvements in this next contract. CWA members in California and Nevada signed an agreement with AT&T earlier this month which included 15% compounded wage increasements, improved health care benefits, expanded tuition aid, and double-time pay for certain technicians.

The Democratic National Convention opens tonight in Chicago. Among the lineup of speakers is United Auto Workers President Shawn Fain. As Esther reported, the Union’s executive board endorsed Vice President Kamala Harris just ten days after President Biden withdrew from the race. The Fain administration has been outspoken in its support for the Democratic ticket, claiming that the Union’s job in this election was to defeat Donald Trump. The DNC will use the first night of the convention to honor the accomplishments and legacy of President Joe Biden. Biden famously joined UAW strikers on the picket lines last year, as workers fought for historic contracts with the Big Three.