8 Associated Builders and Contractors, Inc. REVENGE TOUR After state Democrats took control of Michigan state government for the first time in 40 years, labor unions controlled the agenda for the first several months of the year, with more pro-union legislation on the way. Labeling businesses as “exploitive” in House legislative committee, Democrats sought to rectify what they see as an imbalance of power between businesses and workers they believe are being taken advantage of. While Right to Work and Prevailing Wage were among two of the most notable changes so far, other union-friendly policies currently being developed are likely to have an even more dramatic impact on Michigan’s economy. California-inspired independent contractor legislation (HB 4390) includes troubling changes to force many new workers to become direct employees. The changes are so sweeping that even Uber drivers and Instacart shoppers could be re-characterized as direct employees. Such new policies would threaten the existence of these emerging technology services, while also harming the construction industry accustomed to outsourcing work to subcontractors. The legislation would also impact companies that share employees with other contractors when supplement their manpower during busy times or try to avoid layoffs during slower periods. Democrats label the use of independent contractors as “payroll fraud,” proposing stiff new criminal penalties and blacklisting for even inadvertent mistakes. House Bills (4399-4401) would ban non-compete agreements. More importantly, the legislative package would require employers to disclose compensation levels of each employee to their work colleagues who are “similarly-situated employees.” Being forced to disclose wage rates of all employees within a company will, by design, lead to jealousy and hostility within the workplace among coworkers. Employers who hire temporary employees through various employment agencies like Tradesman, Aerotek or Kelly Services would be punished under House Bill 4034. The legislation discourages the use of temporary workers, proponents claiming every temporary worker is stealing the job of a full-time worker. State Democrats Launch ‘Revenge Tour’ Progressive causes, labor unions lead anti-business push
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