30+ Policy Groups Send Coalition Letter to Congress with Concerns on Independent Contractor Rule

For Immediate Release: March 11, 2024
Contact: Mary Ellen Beatty, MaryEllen@i4aw.org

Over 30 Leading Policy Groups Send Coalition Letter to Congress Raising Concerns with Department of Labor’s Independent Contractor Rule and Its Crushing Impact on Independent Workers

Click here to read the coalition letter.

HAMILTON, Va. ─ As a Congressional Review Act is being considered to rescind the Department of Labor’s (DOL) Independent Contractor rule which goes into effect today, 31 policy organizations sent a coalition letter to the U.S. Congress last week raising concerns with how the new rule would have a disastrous impact on entrepreneurs by improperly classifying many independent workers as employees against their will.

The letter was signed by 31 leading policy groups including Institute for the American Worker, Independent Women’s Forum, Americans for Prosperity.

“The days when stay-at-home mothers can earn a living or pick up a side hustle to add extra income for their families are in peril,” said Patrice Onwuka director of the Center for Economic Opportunity at the Independent Women’s Forum. “Workers want flexibility to take on work that make sense for their unique situations, but DOL’s Independent Contractor rule forces them to either succumb to a more restrictive working arrangement or drop out of the workforce altogether.”

Sen. Bill Cassidy and Rep. Kevin Kiley introduced resolutions to block the Independent Contractor rule and stop the implementation of this damaging interpretation of law. The coalition letter encourages Congress to consider the lost economic opportunity and flexibility American families would lose under the rule, and instead fight to protect independent contracting in America.

Vincent Vernuccio, president of Institute for the American Worker, said, “Instead of empowering workers to make their own decisions to earn a living in the best way to support their families, many policymakers in Congress and the White House want to stifle worker freedom and flexibility. The vague and authoritarian DOL rule will hold back growth, destroy jobs, and harm the very workers it purports to help.”

While the Trump administration issued a rule to add much-needed clarity to DOL’s long-time employment test to determine who can work for themselves, the Biden Administration’s new rule includes interpretations and definitions that significantly modify DOL’s employment test. The Biden changes cause more confusion than clarity, especially for employers hesitant to enter into productive relationships with independent workers and small businesses because they are unable to navigate regulatory requirements rife with gray areas.

As outlined in the coalition letter, the new test to determine whether a worker is an independent contractor or employee would make entrepreneurship equal with five other tests ranging from how “permanent” a position is to the how “integral” that workers is to the contracting business.

“Tens of millions of Americans choose self-employment careers to meet the needs of their families and grow their communities as small business entrepreneurs. This new independent contractor rule inexplicably seeks to destroy these productive career paths that many Americans want and need,” said Austen Bannan, Employment Policy Fellow at Americans for Prosperity.

Click here to read the coalition letter and complete list of signers.

For more information or to set up an interview with I4AW founder and president, F. Vincent Vernuccio, please email Mary Ellen Beatty at MaryEllen@i4aw.org.

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