Provides for definitions of employee and independent contractor. (1/1/21) (Item #24)
The implications of SB 68 are significant for labor law in Louisiana, as it seeks to update the definitions that could influence how unemployment compensation is determined. By clearly delineating between employees and independent contractors, the bill could impact the classification of workers and influence their eligibility for benefits. This differentiation is particularly relevant in the context of a changing workforce where gig economy jobs are increasingly prevalent. Hence, the bill’s provisions may shift how certain workers are treated under state employment laws.
Senate Bill 68, introduced by Senator Luneau during the 2020 Second Extraordinary Session, aims to clarify definitions related to employment within the Louisiana Employment Security Law. The bill defines 'employee' as an individual whose work is subject to the control of an employer, encompassing the employer's authority over how the job is performed and the provision of necessary tools. Additionally, it stipulates that employment does not include individuals engaged in independent trades or professions who control their work processes, aiming to distinguish between traditional employment relationships and independent contracting arrangements.
The sentiment surrounding SB 68 appears to be generally supportive among proponents who emphasize the need for clear definitions in labor law to better facilitate unemployment benefits. They argue that such clarity aids both employers and workers in understanding their rights and responsibilities within the economic landscape. However, there may be concerns from groups advocating for independent contractors who fear that such classifications could lead to a reduction in their rights or benefits.
Notable points of contention regarding SB 68 relate to how the definitions may affect gig economy workers and other independent contractors. Critics might argue that the proposed definitions could lead to increased scrutiny and potential misclassification of workers, which may undermine the benefits available to them. The distinctions made by this bill could either be seen as a necessary evolution in labor law or as a threat to the flexibility that independent contractors currently enjoy in Louisiana’s employment framework.