I4AW Sends Coalition Letter to House Committee on Education and Labor Raising Concerns with Punitive Penalties for Job Creators and Chilling Effects on Independent Workers
For Immediate Release: May 18, 2022
Contact: Mary Ellen Beatty, MaryEllen@i4aw.org
I4AW, Joined By Six Leading Policy Groups, Sends Coalition Letter to House Committee on Education and Labor Raising Concerns with Punitive Penalties for Job Creators and Chilling Effects on Independent Workers
HAMILTON, Va. ─ As the House Committee on Education and Labor meets today to mark up H.R. 7701, the Wage Theft Prevention and Wage Recovery Act, Institute for the American Worker (I4AW) sent a coalition letter to the committee raising concerns with provisions in the bill that would place new requirements and significantly increase potential fines on job creators.
While Democrats are framing the bill as an assurance that businesses and individuals comply with federal wage requirements, the letter outlines several provisions that would have a chilling effect on employers through heavy-handed stipulations and stifling costs, while also disincentivizing work with independent contractors.
The letter states, “This bill would do more to undermine American workers and businesses than it could ever do to address legitimate instances of improper wages and payments.”
Furthermore, the Wage Theft Prevention and Wage Recovery Act would provide unwarranted expansion of Department of Labor (DOL) powers and grant government oversight powers to special interest groups like unions.
Also from the letter, “Not only is this grant program set up to favor labor unions and other certain entities based on selection criteria, but it expands government policing powers to private entities and helps unions advance workplace organizing activities with taxpayer funds – a major concern.”
President of Institute for the American Worker, F. Vincent Vernuccio, noted, “H.R. 7701 is just another attempt to allow some unions to strong-arm job creators at the expense of workers and entrepreneurs. It will also incentivize the Department of Labor to police for profit. The drawbacks far outweigh any benefits.”
The letter was signed by six other leading policy groups including Americans for Prosperity, Americans for Tax Reform, Mackinac Center for Public Policy, New Jobs America, Open Competition Center, and Workers for Opportunity.
Click here to read the coalition letter and I4AW’s list of concerns with the Wage Theft Prevention and Wage Recovery Act.
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.