Tema Steele loves her workplace, loves her team, loves her 401K — and loves all the flexibility that comes with her job.
That’s why she has been doing it for New York Life for 44 years. And why she intends to keep doing it for as long as she can.
She just hopes she will be able to keep doing it in New Jersey.
Like so many others who testified Monday in Trenton about the potential changes to the state’s already-strict ABC rules that determine who is a full-time employee and who is an independent contractor, Steele said she’s concerned about her future.
“If these changes are implemented, I would be forced to move out of New Jersey,” she said.
Hyperbole? Maybe. Or maybe not.
Few issues impact the workplace more than the rules that determine who can be paid as a 1099 — and who needs to be considered a full-time employee. That’s why dozens came to the capital to weigh in on the issue.
To be clear, no one is in favor of misclassification, where employees are unfairly considered contractors — meaning unscrupulous employers do not have to give them benefits or make unemployment or disability payments. It’s a practice that allows the less fortunate to be taken advantage of. And, in the case of union labor, allows less-skilled shops to undercut union workers.
But when the state says it wants to “clarify” these so-called ABC definitions, workers such as Steele get worried.
Like most of the 340 established agents and advisors that New York Life has in the state, Steele likes being an independent contractor who can call her own shots. She says it has helped her grow her business, Steele Financial Solutions, into an eight-person shop.
Why, she asks, should she be forced to become a full-time employee of New York Life. That would mean … she would have a boss.
Steele said she’ll pass on that.
“The problem with working for someone is they have control over you,” she said. “They can hire you, they can fire you, and if they don’t like you, they can make your life hell.”
And for what, she asks.
“I have a 401K with a match, I have health insurance, which I pay very small amount for excellent coverage, and I have a retirement plan,” she said. “So, what would I be getting if I was an employee?”
Herein lies the problem with all this.
Steele is not being taken advantage of. Neither are so many others who choose to be contractors. They often do it to have more flexibility — perhaps to set their own hours.
On Monday, BINJE detailed similar concerns from the organization that represents truckers at the port who enjoy making their own way — and making good money doing it.
To be fair, there are plenty of folks in Trenton who are pushing to make the classification rules even stronger. (And to be fair, the department of labor passed on a chance to comment in this story, saying it wouldn’t be fair during a period of open comment.)
Here’s a question we may have asked: Would it be fair to have two sets of rules —depending on the job or perhaps the money derived from it?
The answer isn’t clear. This is.
The DOL is allowing for 90 days of those public comments — after which (on Aug. 6) it can determine whether the rules will be updated. If the DOL institute changes, it will be up to others to determine if these updates are helpful to everyone — or only to a select few while being hurtful to others.
Steele said she isn’t interested in finding out. Her home of 30 years in Cherry Hill will hit the market, and she’ll head to the Philly side of the river.
She doesn’t want to, but feels she’ll have to.
“I don’t know what kind of a job it would be if my work rules were regulated by someone else,” she asked and then answered. “It would mean I couldn’t meet with people whenever I want.”
And then there’s this: Steele said she would need to move to protect her employees.
“I have a staff of six people who support me and my son, and it works beautifully,” she said. “Everything here is a well-oiled machine. So, tell me how this would work? If I’m suddenly an employee, then what are they?”
Working across the river? Perhaps.
“If they change the rules, we would be forced to move out of New Jersey,” Steele said. “I’m not going to give up my staff and the business model that has made us so successful over the years. That’s how serious this is.”
