The NLRB, in their quest to pull a rabbit out of a hat, continues to ignore economic realities on the gig economy. And if the board is successful in their goal of reclassifying scores of gig workers as employees, this nearly guarantees financial strife for companies that will be forced to shoulder additional costs that could lead to job losses.
Trade organizations, including the Food Industry Association and The National Grocers Association, came together in regulatory comment letters to voice their concerns over the NLRB proposal for rulemaking.
This coalition argues that many companies would no longer be able to meet their operational needs throughout several industries – including not only food service delivery and ridesharing but also manufacturing, retail, hospitality, and more – If the board persists in a mass reclassification of workers.
If these companies are required to enter into joint employer relationships with every vendor or contractor with whom they do business, their already thin profit margins could evaporate. And in a time of already accelerating inflation, passing on more costs to the consumer simply isn’t feasible, meaning that the burden will be on companies.
