Finding Freedom in Unexpected Places
With shut-downs, stay-at-home orders, mask requirements, school and church closures, are you tiring of the never-ending list of can nots, should nots, have nots, and must nots? Us, too. It seems almost unimaginable to even dream about having more freedom in any sector of our lives.
But that’s just what we’re seeing in several states—thanks to the steady work of several excellent nonprofits. It’s an untold, uplifting story about how many Americans today are freer to move about, to serve their fellow neighbors, to help in a time of crisis, to provide for their families.
A little history …
Virtually everyone agrees work is good for the soul and society. Regrettably, many states have seen a pernicious increase in rules and regulations—often designed to protect special interests—that create obstacles to work by requiring licenses for jobs that, well, should not need a license.
According to the Institute for Justice’s License to Work study, in 1950, one in 20 American workers needed a license to perform their job. Today, that number is one in four. Requirements vary from state to state, but in some states even hair braiders, upholsterers, gas pumpers, and florists need licenses to work. On average, you’ll need a year of education or experience to pass an exam, a $260 fee, and approval of a board more intent on keeping people out than on letting people in.
Of course, some licenses make sense, particularly in the healthcare field. What doesn’t make sense is having an EMT license require less training than that of a manicurist, barber, or interior designer. What also doesn’t make sense is to have a license to practice in one state but not recognized by another. For those relocating, or perhaps wanting to travel to help treat COVID-19 patients in a neighboring, surging state, failure of one state to recognize the license of another affects workers, their employers, and in the case of COVID-19, patients in need of help.
This problem is particularly acute for spouses of active duty military who must regularly move to serve our country—and whose financial futures are penalized because of these burdensome regulations. A hair stylist in Texas who must move to New York with her soldier husband should not have to go through the licensing process all over again. Paying fees in each state may benefit state coffers yet act as a potent work disincentive and financial drain for military families.
For more than ten years, the Institute for Justice and other think-tanks have produced research showing the financial costs of licensure regulations with little to no movement on the issue until recently.
In 2019, Arizona became the first state in the country to pass a sweeping reform bill to recognize occupational licenses from other states. Since then eight states have followed with versions of their own—some targeting military families and others broadening the scope of universal licensing recognition even more than Arizona.
In a July 16 piece in the Wall Street Journal, the authors reported on a 2018 study suggesting Florida loses 130,000 jobs each year simply because of licensing requirements. Florida’s governor and legislature responded in a big way to build what the Journal called a “post-coronavirus economy that will provide more opportunities for more citizens.” The Journal’s editorial team concluded: “The Occupational Freedom and Opportunity Act, which the Governor signed on June 30, is the largest licensing deregulation in the state’s history. It’s all about removing unnecessary barriers that make it harder for people to enter certain professions.” Several categories of occupations no longer will have to be licensed including nail technicians, makeup artists, and boxing announcers.
COVID-19 prompted many state executives to offer temporary recognition of some professions’ licenses, most notably health care, to handle the surge of patients during the pandemic. Some of these same executives are now considering making these temporary changes permanent. Such reforms don’t just happen overnight. They’re often the result of the excellent work of nonprofits toiling in the trenches for years, each contributing their piece to the policy food chain … from research to policy development to education. Grantmakers who invested in this occupational licensing reform movement should be proud of the momentum and progress made. What better way to move the needle on an issue that helps families find economic opportunity?
If you’re a philanthropist looking to make our country freer and more prosperous, Hoplin Jackson can help identify the absolute best nonprofits that put workplace freedom at the top of their to-do list.
Until then, we celebrate the rollback of restrictions and the new economic freedom provided to American workers who simply want to get back to work, have flexibility to move their families, and help our fellow citizens survive COVID-19.