NEW Legislation in California that will Impact Many IECs

by Mark H. Sklarow, CEO, IECA

California’s State Senate and Assembly have approved legislation with the governor’s support that will change the classification of most contract workers into employees and all of the protections and benefits granted employees, including minimum wage protections.

The legislation will impact all California-based businesses, including independent educational consultants who hire others as contractors to provide tutoring, essay review, financial aid, and more.

The legislation institutes a three-part basis for determining whether someone in California is a contractor or employee, including:
1. Is the job being performed part of the company’s core business?
2. Does the ‘boss’ direct the way the work should be done?
3. Has the worker established an independent trade or business?

A person is considered an employee if they meet ANY of the three standards. So, those who use essay reviewers or test prep tutors would be required to treat those workers as employees as they are part of the IEC’s core business. This would mean meeting other state laws, including paying appropriate taxes, meeting minimum wage guidelines, and providing vacation time for many of those affiliated workers. Even if the essayist establishes his or her own business, “Essay Tutors of Santa Monica” for example, it is unlikely to be enough to categorize the worker as a contractor.

Note that this will not include business-to-business contracting; for example, a web designer hired by an IEC would not be considered an employee since this work is OUTSIDE the core purpose of the business.

If this bill is signed by the governor, it will not take effect until next year. It is expected to grant employee protections to an additional 400,000 workers in the state. The state is acting, in part, to assure that salaried workers will pay into social security and boost state tax revenues.

Stay tuned for updates and additional information. IECA will provide guidance to California-based IECs when details of the law are delineated by state agencies.

Looking Beyond Today’s Industries and Jobs

By Pamela Kwartler, MA, IECA (NJ)

“There is a mismatch in talent pool and market demand, both currently and in the future. Though academic research often leads business, what’s taught in business courses is generally at least five to ten years behind the business sector.” Those words from economist and business leader Tess Mateo, managing director and founder of CXCatalysts, drive home an important point for IECs: what students learn in today’s business classes will not be enough. We must understand the world our students will graduate into to help them make choices that will propel them forward. Students and families who go on autopilot and reach for a career with a seemingly high ROI today may be surprised by the outcomes. The fact is that none of the fields we know will exist as they are today in the future.

In January 2016, the World Economic Forum introduced leaders of industry, governments, and civil society to the “fourth industrial revolution,” (see www.weforum.org/centre-for-the-fourth-industrial-revolution for more information), a term that CEOs, policymakers, and industry now use to describe how emerging technologies, such as artificial intelligence, quantum computing, 3D printing, and the Internet of things, are converging with humans’ biological and physical lives. New technologies will increasingly do more, to the extent that traditionally economically rewarding positions, such as financial analysts, accountants, finance and medical professionals, and even lawyers will become “redundant, and therefore replaceable.” Many Wall Street traders have had to reinvent themselves because their jobs have also been eliminated by technology. Business is evolving more quickly than ever before: large corporations are being broken up as business units are broken into yet smaller companies. Even 50% of the world’s medical services are delivered electronically.

How do IECs help students prepare for new markets and future economic success when the rules have changed? We often observe that it is students—who they are and what they bring to the world—that matter more than where they earn their degrees. An elite education alone will not necessarily provide the answer.

Democratic presidential candidate Andrew Yang is a Brown-educated, former corporate lawyer, dot-com executive, and CEO of a GMAT test prep company: a symbol of the meritocracy. Today, he doesn’t believe it should be the job of our institutions “to train 80% of our graduates to do one of six things—financial services, management consulting, technology, law, medicine, or academia in New York, San Francisco, Boston, Chicago, Washington, DC, or Los Angeles.” Yang blames the meritocracy for blissfully ignoring the country’s economic crisis and failing to fix problems caused by manufacturing job losses in middle America. The problems that need solving are even bigger than that. Fortunately, so are the opportunities.

Although there is great focus on STEM these days, all majors will matter, and students can study at a wide range of colleges. In 2015, world leaders agreed on the world’s biggest problems, which are collectively referred to the Global Goals or the 2030 Sustainable Development Goals (SDGs). (More information is available at https://sustainabledevelopment.un.org/?menu=1300.) For example, consider that tackling the individual problems caused by climate change will create new jobs worldwide. Along with solutions developed by engineers and scientists, environmental studies majors can explore how indigenous people have farmed sustainably for centuries. The skill of diplomacy will be essential to work cross-culturally and make progress within the worldwide community. As the water table rises and the carbon footprint expands, innovation in agriculture will continue to be a priority. These 21st-century businesses, unlike those that have benefited a small sliver of the first world since the 1980s, will improve the quality of life for all. Deep, nuanced thinkers will need to parse and define the ethics of evolving business models and, hopefully, enforce ethical regulations.

What Can IECs Do?

• Learn more about the fourth industrial revolution so that you help your students explore industries with increasing opportunities. Start by reading more at www.cnbc.com/2019/01/16/fourth-industrial-revolution-explained-davos-2019.html.

• Get smart about SDGs—consider using the global goals as a roadmap, then ask your students which topics they are interested in helping solve. These are big problems that will be around for a lifetime. Discover what passions and skills might be useful—there is a demand for many skill sets. (See page two of the following link to see all the goals and share them with your students: www.undp.org/content/dam/undp/library/corporate/brochure/SDGs_Booklet_Web_En.pdf.)

• Ask students what they can do during high school to develop their interests. Can they travel to explore global problems or spearhead local programs that focus on any of the SDGs?

• Research which colleges are positioning themselves to participate in solutions. For example, developing sustainable food systems is a major global problem (SDG #12), and many college agriculture programs are well-positioned to innovate, including Cornell, Ohio State, Purdue, UMass Amherst, PSU, University of Delaware, the University of Arizona, and the University of Illinois Urbana–Champaign, offer options for many academic levels. Some other examples include Goal #16 Peace and Justice (diplomacy, political science, international relations), Goal #11 Sustainable Cities and Communities (urban planning, construction, real estate), or Goal #7 Affordable and Clean Energy (environmental or civil engineering).

We can guide our students toward fulfilling college experiences that incorporate research, productive study abroad programs, and internships that will lead to employment in fields that truly allow them to impact their world—and ours.

Pamela Kwartler, College Process Counseling, can be reached at [email protected]

Change in Status: An Update on the Legislation in California to Register All IECs

By Mark H. Sklarow, CEO, Independent Educational Consultants Association
 
The proposed law to register Independent Educational Consultants, which passed the Senate and Assembly Committees on Business and Commerce, now sits in the Appropriations Committee’s “Suspense File.”
 
The Suspense File is where bills go that are expected to cost taxpayers money that has not been budgeted. By assigning this bill (AB-1312) to the Appropriation’s Committee’s Suspense File, the state is acknowledging that a bill that was meant to be revenue neutral will, if passed, cost the state of California money.
 
The California government has estimated that implementation will cost the state between $12 and $25 million in the first three years! In theory, the next step is for the Appropriations Committee to weigh the benefits vs the cost.
 
In their research, the California government relied heavily on data supplied to them by IECA. Based on this research, our position, and the anticipated cost, they seem likely to conclude that the registry’s cost greatly outweighs any perceived benefit.
 
Moreover, the Suspense File is where California legislature sends bills—hundreds annually—to die. Often these are bills that sound good to voters but have hidden costs and difficulties. This view—that California was getting into more than they realized—is what IECA was advising in part (our argument was that they would either need to rely on us or spend considerable sums vetting IECs on their own).
 
Be aware that the bill could be resurrected. IECA will keep an eye on it and update with any additional information as it becomes available.

What a Year It’s Been!

By Mark H. Sklarow, CEO, Independent Educational Consultants Association

It has been wonderful connecting with so many of you this spring. Whether at the Chicago conference, the symposium, at affiliated conferences and outreach events, or virtually, it is always a highlight to hear from you about your successes and challenges. Now as our 2018–19 membership year comes to a close, I wanted to summarize this extraordinary year.

Recognition of IECA for Ethical Educational Consulting

Just a few hours after the admission scandal story hit the news, we were advising members, posting statements on social media, distributing news releases, and prioritizing the media requests that came pouring in. We believe IECA was mentioned in hundreds of major newspapers, websites, television, and radio stories. We worked to turn the story away from the criminal actions of a few into one focused on the value and need for an independent educational consultant, and IECA’s 43-year history of being the ‘gold standard’ in the profession. Indeed, by day four, this focus on ethical consulting was the primary story being reported. Now as some state governments look to try and legislate our industry, the need to belong to an association is essential.

Website

There has been a 63% increase in public searches for an IECA member in 2018-19 over the previous year! The search has been enhanced by allowing members to describe their practice and include searchable keywords. We have added 7 professional videos to our website in the last year, five of which are consumer-oriented.

We launched our new online community, the Member Network (replacing the TalkList). The increase in member postings as compared to the old TalkList is dramatic. The Network gives members greater control over the discussions they receive via email (based on specialty). It allows for more robust discussion, archival searches on topics, a library to share documents, and facilitates member to member connections.

Educational Opportunities

We organized 35 campus visits before and after our fall conference in Los Angeles and spring conference in Chicago. We also helped promote additional post-secondary, school, and therapeutic campus tours in both communities. Regional tours offered to members this year included the Red, White, and Blues Tour of 10 colleges in Alabama, Illinois, Mississippi, Missouri and Tennessee; the Big 10+ Tour of 8 colleges in 4 Midwest states; and the upcoming fall WOW Tour of 12 colleges in Western Oregon and Washington.

Tours around the 2019 Fall Conference will include Georgia schools, colleges, and programs; and multiple tours next spring will explore campuses in New Jersey, New York, Connecticut, and Rhode Island. In addition, IECA is working with British, Canadian, and Australian/New Zealand governments to co-sponsor international tours.

Our partnership with School Connections has helped IECA members connect one-on-one with independent schools. These pre-conference workshops at IECA conference hotels now also includes therapeutic programs.

This past year, IECA made a commitment to fund longitudinal research into the impact and effectiveness of therapeutic placements. We will continue this support for the Golden Thread project into the new year.

The Education & Training Committee is developing new ‘Education Intensives’ as a way to add a ‘deep dive’ into critical learning areas for members.

Our free monthly webinars for members ranged from sample essays to executive functioning skills to college planning for students with disabilities (there were a remarkable 2,053 webinar views last year).

Our member-organized College Symposium in Philadelphia was the largest symposium yet, with 140 attendees and included 10 colleges participating. The reviews have been overwhelmingly positive. Next year’s Symposium will take place in Ohio.

We continue to offer our signature Mentoring program to all IECA members at any time during their consultancy. Mentees receive direction and support with the goal of gaining confidence and independence.

Networking Opportunities

Our more than 40 Regional groups across the country and worldwide allow members to connect and collaborate throughout the year.

The annual Professional Member Retreat provides a smaller forum for more experienced members to gather and address advanced business-related topics. The 2020 program will be held in California.

We offer 11 Affinity Groups for members to connect. These micro communities (just added to the Member Network) are led by members with similar interests in a specific topic and provide a space to network about what’s important to you.

We want to thank all of our volunteers—those who serve on committees, who have created campus tours, who present at conferences, who run regional groups, and serve in so many ways. It is the staff’s privilege to work with you as we begin to prepare for another outstanding year.

Securing Students’ Success, not Admission, Makes IECA Unique

By Mark Sklarow, CEO, IECA

Recently, a small group of new independent educational consultants (IECs)—all college-focused—were gathered at an IECA event. Seeing me, they waved me over. Why, they wondered, did we not have the word admission in the organization’s name? I noted that the word admission didn’t appear in our name, our by-laws, our purpose statement, or any tag line at any point in our 40-year history. Jaws dropped.