Probably the biggest news story missing from the Drive By Media is the passage of US House of Representative’s Resolution 2474 (HR2474). HR2474 was originally brought to the House floor back in May of 2019 running juxtaposed to California’s historic Dynamex decision which, in turn, triggered the passage of California Assembly Bill 5 (AB5). It is now taking form on in the US Senate and very well could pass as the Democrats now control both the House and the Senate. Fact of the matter is that the $15 an hour minimum wage bill tacked on to the COVID relief package now rolling through the House is nothing compared to HR2474.
In a nutshell, HR2474 waves a magic wand over 30 years worth of labor law. Here is the the pertinent language,
In the past, Foreclosurepedia has been fortunate to quote material from Littler. Littler Mendelson, P.C. is part of the international legal practice Littler Global, which operates worldwide through a number of separate legal entities. The have some incredible articles on a wide array of topics including most recently the California AB5 dilemma we wrote about. To that point, Messrs. Model, Burke, Baskin, and Lotito opine in an article titled PRO Act Would Upend U.S. Labor Laws for Non-Union and Unionized Employers Alike the following items which HR2474 would implement,
Effectively overturn state “right to work” laws, Codify the “ABC test” to deem independent contractors “employees” covered by the NLRA, Limit the ability of employers to contest union election petitions and allow unions to engage in coercive tactics long held to be unlawful, Restrict the ability of employers to obtain labor relations advice, Facilitate union organizing in micro-units, Redefine the definition of “supervisor” to include more frontline leaders as “employees” covered by the NLRA, Change the definition of “joint employment” and force businesses to alter their structures or face liability, Give employees the right to utilize employer electronic systems to organize and engage in protected concerted activity, Prohibit employers from using mandatory arbitration agreements with employees, Force parties into collective bargaining agreements via interest arbitration, and Expand penalties for violations of the NLRA.
The article is a great read and I highly recommend it for those in the 15,000+ Foreclosurepedia Nation whom like the bleeding, cutting edge information. To that point, though, where I differ with Littler — and I infer that their opinion is against HR2474 — is that mandatory arbitration is a horrible trampling of the rights of Labor. Moreover though — and in the same way I accurately predicted the passage of AB5 — with tax revenues at all time lows and with tens of millions of independent contractors actually misclassified employees — our Industry has tens of millions of dollars in settlements by NAMFS members to attest — I believe that HR2474 may very well gain traction. In fact, I predicted as much, at the beginning of COVID, when there were only three cases throughout the US.
The reality is that our Industry has misclassified employees as independent contractors for years. How it works is that National Association of Mortgage Field Services (NAMFS) members provide the work, the software to submit the work, sets the pricing of the work, and instructs precisely how to perform the work. There is no way that NAMFS members are able to state that their business model is separate and distinct from that with the misclassified employee performs.
While I do not fully support HR2474, there isn’t much in it I do not like in light of how NAMFS members have abused and financially terrorized Labor for decades. We have 2000+ articles discussing as much. To that point, though, the sway which NAMFS held over the Industry has come to an end. With NAMFS Executive Director Eric Miller’s salary consuming 99.7 percent of all NAMFS member dues, people have begun to realize that the bark has now become a whimper. And in closing, that is always the problem when the pendulum swings — it does a complete 180.