The Washington Scene

In case you missed the Breaking News last week, here is an update on the controversial AB5 law which, in theory, could affect the entire United States if it were up to President Biden. I say this because Biden has gone on record to say if he were elected, he would be the best pro-union President this United States has ever seen. And guess what, He is now President. In fact, to the best of my knowledge, he has included AB5 in his Pro Act which was passed the house of representatives on Marc 9, 2021. The bill is currently waiting consideration by the Senate.

Today, the Solicitor General (SG) of the United States (the federal government’s representative before the Supreme Court) filed a brief recommending the Supreme Court deny review of California Trucking Association’s (CTA) case challenging the application of AB 5. Readers will recall that CTA sought an injunction against application of the California law imposing a restrictive ABC test for determining worker status as an independent contractor or employee, claiming the state legislation essentially makes all drivers employees and must give way under a federal provision that preempts state laws relating to prices, routes, and services of motor carriers. The trial court agreed and granted an injunction prohibiting enforcement of AB 5 with respect to the trucking industry. On appeal, a divided panel of the United States Court of Appeals for the Ninth Circuit reversed, utilizing a narrow test unique to the Ninth Circuit, but the injunction was permitted to remain in place pending CTA’s appeal to the Supreme Court.

From our friends in Washington, D C and Atlanta, GA, we recently learned that a Texas judge has ruled that a new, more business-friendly definition of independent contractor published in the final days of the Trump administration must be reinstated, because the Biden administration failed to give enough time to comment on its rulemaking that walked back the Trump definition.

The National Labor Relations Act (NLRA), which governs most private sector labor relations, is administered by the National Labor Relations Board (NLRB). Under the Trump administration, the NLRB took a decidedly pro-business position on many issues that impacted union organizing. As President Biden continues to roll out his agenda, the administration intends to reverse many of these policies, taking a pro-employee stance akin to what was in effect in the Obama years. In a recent statement issued on Twitter, Biden stated that “Every worker should have a free and fair choice to join a union.” What’s more, he even broke with more than 50 years of tradition by firing the Trump-appointed general counsel of the NLRB prior to the end of his four-year term. These actions serve as a warning to businesses that the employer-friendly posture of the NLRB quickly is ending.

The U.S. Department of Labor has proposed withdrawing a rule adopted in the waning days of the Trump administration that was generally perceived to be favorable to motor carriers’ use of independent contractors. The rule, which revised the agency’s interpretation of independent contractor status under federal law, was set to take effect May 7.

The Protecting the Right to Organize Act of 2021 (also known as the
“PRO Act”) is back with its laundry list of organized labor’s most-wanted
government handouts. After decades of declining membership, unions see
the PRO Act as a way to energize their rolls of dues-paying members by
making it much easier for unions to organize in the modern workplace and
restrain the ability of employers to fend off organizing drives. The U.S. House
of Representatives passed it on to the Senate last week, by a vote of 225-
206.