Government Affairs
BY RICH MEADE , CHAIRMAN , PRIME POLICY GROUP
Presidential Race
The political world was turned upside down when President Biden announced on July 21 that he was not going to seek reelection . This is only the third time in modern history that an incumbent president chose not to seek reelection . The other two presidents to opt of reelection runs were Presidents Lyndon Johnson and Harry Truman . The major difference is those two presidents made their announcements in March of the election year , much earlier than President Biden ’ s late July announcement .
President Biden quickly announced his support for his Vice President Kamala Harris to be the nominee of the Democratic Party . And the leadership of the Democratic Party quickly coalesced behind her candidacy at the Democratic Party Convention .
California ’ s Proposition 22
The Supreme Court of the state of California issued a ruling in the legal challenge to Proposition 22 and found the voter initiative to be constitutional .
The California legislature passed an initiative in 2019 known as AB 5 that essentially made it illegal for businesses in the state to engage workers as independent contractors . Several of the ride-sharing and food delivery companies put forward a ballot initiative known as Proposition 22 that allowed those gig companies to continue to engage workers as independent contractors .
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The Service Employees International Union ( SEIU ) California challenged Proposition 22 in the state courts shortly after it took effect . In August of 2021 , the Alameda County Superior Court ruled that Proposition 22 was unconstitutional because it removed from the legislature the ability to govern workers ’ treatment under California labor laws . In March of 2023 , a three-judge panel from the California Appeals Court reversed the County ’ s decision on Proposition 22 . That decision was appealed to the California Supreme Court , which found the ballot initiative to be valid and within the state ’ s Constitution .
Non-Compete Clauses
The Federal Trade Commission ( FTC ) issued a final regulation on April 23 prohibiting businesses from entering into non-compete clauses with their workers . The final rule will take effect on September 4 , 2024 . The US Chamber of Commerce filed a lawsuit challenging the FTC ’ s authority to proffer this kind of regulation citing the fact that the FTC does not have the legal authority to regulate what constitutes unfair methods of competition .
8 customized logistics & delivery Magazine I summer 2024