News Digest 5-22-2020

Quote of the day

“A contractor-focused model allows gig companies to quickly scale up to meet demand, while giving contractors the freedom to work when and where they want. Deliv’s abandonment of that model, and its subsequent closure, should be a warning sign for legislators–and a cautionary tale for other states looking to follow California’s lead.”

Prof. Jeff Joseph, George Mason University

Orange County Register



California: ‘Delivery company’s implosion shows risk of AB5’

A California delivery start-up praised by organized labor for its use of employees rather than independent contractors plans to wind down operations and lay off 669 employees. The company’s implosion illuminates how the state’s now-infamous Assembly Bill 5, which severely reduces companies’ ability to use independent contractors and instead forces them to hire employees, is unworkable for the gig companies many Americans rely on, argues Prof. Jeff Joseph of the Schar School of Policy and Government at George Mason University. Orange County Register


Kentucky: Calvert adopts workers’ comp rate stabilization

Calvert, Kentucky city officials have entered into a workers’ compensation insurance agreement with the Kentucky League of Cities that limits rate increases to no more than 9 percent over three years. The agreement allows a rate increase of no more than 3 percent per year for each of the three years. Marshall County Tribune-Courier


North Carolina: Triad first responders seek better coverage for COVID

First responders in North Carolina’s Triad region are pushing for better coverage at the country level in case of COVID-19 infection, as opposed for waiting for a change in law at the state level. WGHP (Greensboro, N.C.)


Are home offices dangerous?

Amidst a dramatic global workplace shift, office professionals around the world have retreated to their homes and immediately became responsible for their own office design. But most have no idea about occupational safety regulations. How do employers protect themselves and their teams? Forbes


Philadelphia workers’ comp firm lays off quarter of its workforce

Pond Lehocky Giordano, a Philadelphia-based workers’ compensation law firm, announced this week it is laying off more than 25 percent of its employees amid the coronavirus pandemic. Reuters