Best & Worst Policies Of 2023

Best & Worst Policies of 2023

As 2023 draws to a close, we take a moment to review the best and worst policies from Washington to state capitals that impact women’s freedom and choices in the labor force as well as the entrepreneurial spirit of America.

Best:

States Dropped College Requirements For Public Jobs
Over a dozen red and blue states have eliminated degree requirements and sent a powerful message that a degree should not hold qualified workers back from ample opportunities. Pennsylvania, Florida, and Georgia jumped on the bandwagon. 

Portable Benefits
In contrast with universal benefits (like healthcare coverage) offered to full-time employees by an employer, portable benefits are decoupled from employers and follow individual workers regardless of work arrangement—W-2 or freelance. This is very important for so many women who prefer independent contracting over traditional work. 

Right-to-Work for Public Unions
Utah passed a bill to ban public employers from deducting union dues from a public employee’s wages (with a few special exceptions) and banning the use of taxpayer dollars or public property to aid or discourage union-drive efforts.

Uber Drivers Remaining Independent in California
California appeals court on March 13, 2023, affirmed that Proposition 22 is mostly constitutional, upholding the ballot initiative that allows Uber, Lyft, and other app-based platforms in California to classify their drivers as independent contractors rather than employees. 

SCOTUS Hearing CFPB Challenge Is A Win For Freedom, Taxpayers
SCOTUS’ agreeing to hear the case is important because the Consumer Financial Protection Bureau’s unconstitutional funding structure improperly insulates it from congressional oversight and allows for it to pursue ideological 

Remote Work Creates Opportunities For People With Disabilities Year Round
People with disabilities benefitted from remote work policies enacted in response to COVID-19 lockdowns according to 2022 research showing that the employment rate for people with disabilities was the highest in over a decade.

Big Tech Platforms Expand Parental Controls In The Face Of Increased Government Pressure
Tech companies and social media platforms are rolling out policies and services to address minors’ online safety. Giving parents more control over what and how much content their children consume seems to be the leading response. 

Worst:

There is no shortage of bad ideas. Here are some we engaged with this year:

IRS’ Venmo Crackdown Delayed But Not Dead This Holiday Season

Looking to fund the costly $1.8 trillion American Rescue Plan Act (ARPA), Democrats lowered the previous threshold of at least 200 transactions totaling $20,000 or more to just $600. There is no transaction minimum, so a person could be one used treadmill away from new red tape and tax headaches.

FTC Prohibition On Noncompete Agreements

Another example of unconstitutional administrative overreach by a Biden federal agency that would threaten the competitiveness and intellectual property of employers nationwide.

Lawmakers Reintroduce the PRO Act in Honor of Union Boss

The PRO Act is neither pro-worker nor pro-woman, it’s just pro-union. Like AB5, it will hurt the freedoms and flexibility that today’s workers enjoy.

European Competition Rules Could Trip Up U.S. Businesses

The Digital Markets Act (DMA) is a worrisome antitrust bill that straddles Big Tech companies such as Apple, Meta, Amazon, Microsoft, and Google with many new limits on their ability to execute core functions. By targeting U.S. companies, new foreign regulations have implications for domestic markets. Those impacts may work against your wallet and your business.

State-level Crackdowns on Worker Freedom

• RI Independent Contractors Mandated To Pay Fee To Retain Status
  A worker won’t be considered an independent contractor unless they file with the state and pay the mandatory fee.
• MI Right-To-Work Repeal Bad News For Businesses, Independent Contractors Michigan became the first state in decades to repeal its right-to-work law. Compared to unionized states, right-to-work states see greater economic growth and overall worker happiness regardless of worker status.
• MI Legislature is Mulling an ABC test
  Michigan could be the next state to make independent contracting out of reach for its residents. New legislation would copy California’s devastating Assembly Bill 5 by instituting an ABC test under the guise of fighting misclassification.
• MN Misguided Crackdown Of Independent Contractors
  The state established a Task Force on Worker Misclassification as a step toward greater restrictions on independent contractors.

Biden’s New Overtime Rules Come With A Price
While this move is positioned as a pay increase for workers, it will massively increase costs for businesses and may not deliver the widespread paycheck bump advocates believe that it will.

FTC Sues Amazon
The problem for the FTC will be proving the anti-competitive behavior using the framework that guides antitrust law today, the consumer welfare standard. Evidence points to the opposite of what the FTC claims. If Lina Khan’s FTC wins this case, consumers and sellers will lose big.

Biden Sneaking Childcare Subsidy Through The Back Door
The Department of Health and Human Services proposed new rules including a requirement that states ensure parents pay no more than 7% of their family income for child care. The potential negative, unintended consequences of the proposed regulations are many. 

Biden Admin Wants To Punish Lenders For Asking About Immigration Status—Raising Prices For Everyone
The CFPB is teaming up with the Justice Department to punish lenders/financial institutions for denying applications based on immigration status. Immigration status can have a massive impact on whether a person can repay a loan.

Rate Caps in Lending
Federal lawmakers just introduced the Predatory Lending Elimination Act, limiting the interest rates that certain lenders can charge veterans and all consumers to a 36% annual percentage rate. This will make it more difficult for Americans, particularly subprime borrowers who depend on short-term, small-dollar loans to gain access to credit. States tell the tale:

• Illinois: How Illinois Is Harming The Unbanked
• New Mexico: ‘No Loan For You!’ Report Exposes Banking Hurdles For Even The Best Customers

Bottom Line

The government’s role is to knock down barriers to opportunity, respect the rights of individuals, and ensure that the free enterprise system can operate freely. Many policies are advancing those goals, but unfortunately many more work against them. 

Here’s to another year of advocating for good policies and against the bad ones out of Washington and state capitols across the country.