The Influence of the Pandemic on Work: Urging the Evolution of Labor Laws

By Marc Primo

The nature of work has always been in flux, but the COVID-19 pandemic catapulted us into a new era of transformation. Advancements that might have taken a decade to unfold were compressed into a single year. In this whirlwind of change, it becomes paramount for labor laws to remain attuned to the present times, ensuring they keep pace with the rapid evolution of our society.

Thankfully, a group of lawmakers has recently proposed the Employee Rights Act of 2022, a long-awaited modernization of our nation's labor laws. It is crucial to acknowledge the significant game-changing developments that have taken place since the start of the pandemic, which have further emphasized the importance of this update.

Mandatory closures compelled businesses to embrace technology and adopt new work methods to sustain operations in the short term. This adaptation not only ensured continuity but also laid the foundation for more efficient and flexible platforms in the future.

In 2020, the combination of job losses and the growing demand for autonomy and flexibility (due to school and childcare closures) led to a 12% increase in individuals transitioning to independent work.

The increased focus on safety measures has led to a surge in the demand for contract-based services available on gig-economy platforms. This has opened up new avenues for individuals of all ages, backgrounds, and educational levels to find work that suits their preferences and circumstances. These opportunities empower people to choose the best path for themselves, ensuring flexibility and adaptability in the ever-changing job market.

Amidst the pandemic, we are witnessing an unprecedented surge in quit rates. This serves as a reminder that the modern workforce is embracing a more dynamic career path, with individuals changing jobs multiple times over their professional journey, rather than committing to a single company for life.

In recent years, workers have achieved significant progress in terms of wages and workplace benefits, despite a decline in union participation. Notably, there has been a remarkable 64% increase in the proportion of workers who now have access to paid family leave in just the past five years.

However, the majority of labor laws in America were established seventy-five years ago during a time when the labor market was predominantly male, unionized, and focused on manufacturing.

The significance of the Employee Rights Act of 2022 cannot be overstated. This crucial legislation brings labor laws up to date with the demands of the modern era, safeguarding the fundamental rights of workers and empowering them to pursue livelihoods that align with their individual needs and aspirations.

The bill stands in sharp contrast to the Protecting the Right to Organize Act proposed by liberal lawmakers. While the former threatens to undo years of progress in the labor market and impose unionization on workers, compromising their autonomy, flexibility, and earning potential, the latter seeks to safeguard their rights and provide greater opportunities for growth and prosperity.

First and foremost, the Employee Rights Act protects the rights of individuals who prefer self-employment over working under a supervisor. This is achieved by modernizing the Fair Labor Standards Act to incorporate a definition of an "employee" that aligns with other federal and state laws as well as Supreme Court rulings. The definition is based on the extent of control an individual has over their own work.

Preserving individuals' right to work for themselves is of utmost importance. In 2021, a staggering 59 million Americans (36% of the workforce) engaged in independent work, with an additional 59 million (36%) expressing their inclination towards freelancing in the future. The allure of working independently stems from the desire for flexibility, as evidenced by 32 million independent workers (55%) who cite personal circumstances such as health issues or childcare needs as hindrances to traditional employment.

The Employee Rights Act also acknowledges the diverse methods of initiating and expanding a business, safeguarding alternative routes to entrepreneurship like the franchise business model. This recognition highlights the Act's commitment to protecting and promoting various pathways to success in the business world.

The Employee Rights Act, by formalizing the well-established principle that an individual can only have one ultimate supervisor, aims to protect the livelihoods of approximately 730,000 individual franchise operations and the 8.4 million individuals employed by them. Furthermore, this legislation ensures that opportunities for future entrepreneurs remain open, all while upholding the essence of fairness and clarity in the workplace.

Currently, 39% of female franchise owners credit the franchise model for enabling them to own their businesses. However, the Protecting the Right to Organize Act poses a potential threat to this model. This act seeks to enshrine an Obama-era regulation into law, holding national franchisor firms legally accountable for the actions of individual small business franchise owners, even in cases where the national franchisor has no control. This regulation was estimated to impose an annual cost of up to $33.3 billion on franchise businesses, resulting in a reduction of 376,000 jobs and a staggering 93% increase in lawsuits against franchises.

The Employee Rights Act encompasses essential American protections, including freedom of speech, the right to a secret ballot election, the opportunity to receive a raise, and safeguarding worker privacy. This comprehensive legislation ensures that these fundamental rights are upheld for all employees.

The Employee Rights Act aims to safeguard workers' rights by requiring unions to obtain workers' consent before deducting dues from their paychecks for political purposes. This bill extends the protection already granted to public sector employees in certain states to private sector workers as well. On the other hand, the Protecting the Right to Organize Act takes a different approach, potentially jeopardizing workers' paychecks and overturning right-to-work laws in 27 states. These laws currently prevent workers from being compelled to pay union dues as a condition of employment.

The Employee Rights Act aims to ensure that workers have the opportunity to vote for or against unionization through a secret paper ballot election. Currently, some unions resort to intimidation, coercion tactics, misinformation, and blackmail to circumvent a fair secret ballot election. In contrast, the Protecting the Right to Organize Act would normalize these undemocratic tactics. By prioritizing word choice, sentence structure, readability, and eloquence, we can enhance the writing quality of the content while preserving its original meaning.

Given the soaring inflation rates, it is crucial for workers to receive a well-deserved salary increase. However, the existing union contracts often restrict employers and employees to rigid tenure-based pay scales, disregarding the hard work put in by the employees. The implementation of the Employee Rights Act would grant employers the flexibility to offer compensation raises that go beyond the limitations set by the union contracts. This would ensure that workers are fairly rewarded for their efforts and contributions.

In an age where personal data holds value and identity theft is a concern, safeguarding worker privacy has become increasingly crucial. Similar to the national "do not call" registry, the Employee Rights Act aims to empower individuals to choose whether their personal information is shared with unions during organizing campaigns. This measure would effectively prevent union organizers from intruding on employees' personal property and exerting undue pressure to secure their support for unionization.

The debate surrounding the Employee Rights Act and the Protecting the Right to Organize Act continues to resonate throughout the American workforce. The crux of this debate hinges on the balancing act between preserving worker autonomy and providing comprehensive protections for their rights and interests. While the Employee Rights Act champions individual choice, flexibility, and entrepreneurial spirit, its counterpart raises concerns about undermining the traditional franchise model and imposing burdensome regulations on businesses. As policymakers navigate these uncharted waters, the imperative lies in crafting legislation that both empowers workers and fosters a robust economic environment conducive to growth and innovation. The outcome will shape the landscape of employment and define the contours of labor relations for generations to come.