Welcome to the February edition of The Pointer newsletter. Self-employed Americans are top-of-mind as our fellows speak out against soon-to-be-enacted federal independent contractor regulations. We also explore how granny flats can be a solution to housing unaffordability and women’s financial security in their later years, while rent control is not. Plus, a call for Congress to abandon omnibus bills and return to the appropriations process.
Check out the latest tech, labor, and economic analysis below from Independent Women's Forum’s Center for Economic Opportunity.
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Women entrepreneurs like me will be hit hardest.
The new rule will directly affect the livelihoods of entrepreneurs like myself who have built companies that both rely on and offer flexibility and competitive fees to independent contractors.
My woman-owned business, FLEX Partners, was specifically designed to curate strong networks of skill-specific consultants who work with us as independent contractors to meet the very unique needs of our clients. But this contractor model also allows us to partner with the best of the best (notably, the majority of whom are women and mothers) on schedules and fee structures dictated by themselves.
These are not workers who are hurt by their label as independent contractors – they are workers who are empowered and thriving because of it.
[keep reading]
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 WHAT'S THE POINT
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Biden Franchising Regulations Delayed but Not Denied
The new joint employer rule could have wide-reaching impacts on well-known franchise brands. Large businesses with franchises or subcontractors risk increased lawsuits because they could be liable for the actions of those contractors and franchisees. Franchisees would face an avalanche of new paperwork and compliance costs.
ADUs to the Rescue: A Tool for Income-Generation and Housing Affordability
Many homeowners have dwelling space in their homes or on their properties that could be converted into liveable space for another person or family. They face challenges that discourage them from pursuing these projects: the cost of renovation and construction, the cost and time of the permitting process, and zoning regulations set by localities.
Boston Globe | What the Fight Over Spending Is Really Costing Us
It is undeniable that omnibus spending bills are efficient: They bulldoze the deliberative process, and they do it with unmatched speed. But American governance was not designed with efficiency in mind. In fact, just the opposite: Our system purposely trades efficiency for democratic deliberation.
House Committee Grills Labor Chief Over Independent Contractor Crackdown
Administrator Looman not only appeared to be unfamiliar with the language within the 339 pages of the independent contractor rule but also was unaware (or pretended to be) that the rule is written in such a way that classifying any profession as anything other than an employee is next to impossible.
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The Hill | Watch Out — California’s Damaging Gig Workers Law Is Going Nationwide
In 2019, I was a California writer-consultant, reinvention coach and E-RYT 500 yoga instructor and programs lead whose life was upended by the passage of Assembly Bill 5 (AB5) into law.
An exemption (AB2257) was offered a year later, but it only allowed me to continue my work as a journalist — and barely that. Since AB5’s passage, many national and international companies wouldn’t touch California writers. As for my reinvention clients and yoga work? It was gone — $2,000 a month in income that was no longer accessible, with no way to recoup.
After three years, my husband and I fled California and moved to Alabama, a right-to-work state that respects independent professionals and encourages small businesses to thrive. Sadly, AB5 and its damage continues to chase after me. [keep reading]
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ON OUR RADAR
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“Ms. Looman, right now consumer sentiment resembles about what it did during the Great Recession. Gas prices and grocery prices have shot up during this administration, while real wages have gone down. We need to be encouraging economic growth, supporting workers, and empowering job creators, yet your division’s agenda appears to have precisely the opposite objectives.”
- Chairman Rep. Kevin Kiley (R-CA) during a U.S. House Education and Workforce Committee, Workforce Protections Subcommittee hearing featuring The Honorable Jessica Looman, Administrator, Wage and Hour Division of the Department of Labor
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Yours in the fight,
Patrice
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