A new proposal from the U-S Department of Labor would clearly define what it means to be an independent contractor. Currently, the Department of Labor's definition refers to independent contractors as, "workers who, as a matter of economic reality, are not economically dependent on their employer for work and are in business for themselves."
A new definition would more clearly distinguish between them and regular employees, who are covered by more federal labor protections.
Jack Fiorito, a distinguished professor at Florida State University, explained what the new definition would do.
"The Department of Labor is saying, in effect, there are too many instances where people are, for all practical purposes, employees," Fiorito said, "but are being excluded from these laws because they're technically considered, according to the contracting party, they're considered independent contractors."
Fiorito said some opposition has come from employers who do not see themselves as such. Others are worried the gig economy would decay since independent contractors would be classified as employees, meaning they would not be making as much money. November 28 is the deadline to submit comments to the Department of Labor about the proposal.
Rapid growth in the recent decade of gig-economy companies that utilize independent contractors has made this rule necessary. But, there could be some big challenges ahead. Fiorito said one of the big ones is that the recent elections will impact whether this proposal comes to fruition.
"If they could do something before the next Congress takes office, that's about another month or so, that would probably be their only chance to do it, really. Because I think the new Congress with a Republican majority in the House is probably going to be looking to roll back any such regulations that the Department of Labor might be considering rather than expanding those," Fiorito said.
He remains uncertain as to whether the new Congress will stall on this issue or come together on it. The new rule would have sweeping implications if enacted. According to the Department of Labor estimates, there are about 22.1-million independent contractors across the nation.
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Georgia lawmakers are mapping out the state's future in artificial intelligence.
This week, the Senate Study Committee on Artificial Intelligence wrapped up months of work, approving a 185-page report filled with recommendations. The plan outlines how Georgia can embrace AI to grow industries, prepare its workforce and address challenges such as data privacy and fairness.
The committee chair, Sen. John Albers, R-Roswell, said examining AI's impact is critical for the state's progress and workforce.
"It's going to grow, it's going to change some jobs," he said, "but it's an important part of what we do and also making sure we're educating the workforce to be able to work in those manufacturing plants, because we want more of that right here in our state of Georgia."
The report emphasizes collaboration, with input from experts and communities to balance AI's opportunities with its challenges. Lawmakers are also looking at defining AI in legal terms to ensure its responsible use.
The report explores the possibility of creating a state AI board, monitoring its use in government agencies and fostering innovation across industries. Other options include developing grant proposals to help small farmers adopt AI for smarter crop management, and incentives for Georgia's entertainment industry to embrace AI-powered projects.
Albers is conviced that legislation will be key to striking the right balance.
"We also believe that we need to adopt state legislation to support AI regulation without stifling innovation, as we've talked about several times now," he said. "That includes a comprehensive data privacy bill, an updated 'deep fake' law."
He added that includes transparency in how the state is adopting AI. The committee also suggested further studies, noting how rapidly AI is evolving.
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By Wesley Brown for the Arkansas Delta Informer.
Broadcast version by Freda Ross for Arkansas News Service reporting for The Arkansas Delta Informer-Winthrop Rockefeller Foundation-Public News Service Collaboration.
Although the COVID-19 pandemic is well in the rearview mirror in Arkansas, the number of working-class families on the brink of financial calamity has steadily climbed over the past two years.
New data from the ALICE in the Crosscurrents: An Update on Financial Hardship in Arkansas report shows nearly 11,000 more Arkansas households are struggling to make ends meet in 2022 compared to the previous year. That news comes even as wages for the lowest-paid jobs have risen nationwide at the fastest rate in four decades.
This brings the total number of households living paycheck to paycheck across Arkansas to 562,879, representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.
This includes 195,972 Arkansas households in poverty and another 366,907 defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the federal poverty level but less than what's needed to survive in the current economy. ALICE workers include childcare providers, home health aides, and cashiers-those working low-wage jobs with little or no savings and one emergency from poverty.
"ALICE is the families that we all know and love," said Sherece West-Scantlebury, CEO of Winthrop Rockefeller Foundation.
The new ALICE report was shared at a press conference at the Delta Dental of Arkansas Foundation office in Sherwood. In addition to Winthrop Foundation, the report's sponsors include Delta Dental of Arkansas Foundation, Entergy Arkansas, Baptist Health, Arkansas Blue Cross Blue Shield, and Heart of Arkansas United Way.
The original ALICE in Arkansas report in 2020, unveiled just weeks before COVID-19 was declared a global pandemic, indicated that 41% of Arkansas households were either below the federal poverty level or had incomes that struggled to afford housing, childcare, food, transportation, and healthcare.
At the time, the federal poverty line for a family of four was $24,600 or 17% of Arkansas households, while ALICE households were between that amount and $46,812, or about 24%. Between 2021 and 2022, the number of impoverished households in Arkansas increased by 6,141 (remaining at 16% of all households).
During the same period, the number of ALICE households increased by 4,813 (remaining at 31% of all households), continuing a more than decade-long trend in the growth of this population. In 2022, of the 1,201,499 households in Arkansas, 562,879 - 47% - were below the ALICE threshold. This brings the total number of households living paycheck to paycheck to 562,879-representing 47% of the state's population, according to the latest update from ALICE in Arkansas, in partnership with United For ALICE.
The reports show that while wages were increasing, so were costs. For a family of four with an infant and a preschooler, the basic costs to live and work in Arkansas, excluding tax credits, rose from $54,948 in 2021 to $71,052 a year later. Compounding the issue in 2022 was the loss of up to $15,000 in federal child tax credits and stimulus payments that families had access to in 2021.
"There is no doubt, bigger paychecks helped, but inflation and the loss of pandemic support converged to keep ALICE trapped," said Delta Dental of Arkansas Foundation Executive Director Sharon Lanier. "This latest data is a reminder that while we have made some progress, we must continue to work together to address the challenges ALICE face."
In 2022, the Bureau of Labor Statistics (BLS) reported that 70% of Arkansas's 20 most common occupations were still paid less than $20 per hour. Of the workers in these 20 most common occupations, 31% lived below the ALICE survival budget in 2022.
"As we gather to share this critical report and announce steps that our Arkansas banks and financial institutions are taking, we urge community leaders, businesses, and nonprofits to join us in addressing the pressing issues of child care, debt, and housing-the three primary budget busters impacting ALICE families," stated Mollie Palmer, vice president of communication and engagement for the Heart of Arkansas United Way. "Together, we can make a meaningful difference in the lives of those who are essential to our local communities and state economy."
In response to these challenges, Encore Bank, Southern Bancorp, and Diamond Lakes Federal Credit Union have officially joined the ALICE@Work initiative to support struggling ALICE employees and families. This effort exemplifies how employers across Arkansas can invest in ALICE workers and foster impactful partnerships within the community.
ALICE@Work is part of the broader ALICE in Arkansas initiative led by the Arkansas Asset Funders Network-a regional grantmaker chapter focused on improving opportunities for low- and middle-income families to build economic well-being. The initiative includes a variety of methods, such as individualized data reports, extensive course curricula, and self-guided action plans, to help businesses understand their employees' daily challenges and then take action for change.
"We are proud to participate in the inaugural ALICE@Work cohort," said Phillip Jett, CEO of Encore Bank. "By investing in the financial health of ALICE employees, we're not only empowering individuals but also strengthening the resilience and vitality of our communities."
The ALICE in Arkansas initiative encourages community leaders, business owners, and nonprofit organizations to engage with ALICE, highlighting the critical issues of childcare, debt, and housing-the three primary budget busters affecting ALICE families. Legislators are also urged to address these pain points in their budgets, ensuring comprehensive support for those in need.
For more information on ALICE and the ALICE@Work initiative, please visit aliceinar.org.
Wesley Brown wrote this article for the Arkansas Delta Informer.
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