The House Education and Labor Committee passed a new Congressional Review Act (CRA) resolution authored by Representative Kevin Kiley (R-Calif.). This resolution repeals a Department of Labor (DOL) final rule that puts the lives of 27 people at risk. Million independent contractors. The effort also includes Sen. Bill Cassidy (R-Louisiana), who has also introduced a CRA resolution on independent contractor rules in the Senate.
The Biden administration aims to make it more difficult for Americans to self-classify as freelancers by forcing new DOL regulations on America's thriving gig economy. Fortunately, Republicans are listening to a large coalition of independent contractors, many of whom value the ability to pursue multiple sources of income and scoff at the limitations of W-2 status. There is.
“Independent contractors want to be their own boss. But Biden and the Democrats want them to have a boss,” said Grover Norquist, president of Americans for Tax Reform. .
Americans for Tax Reform applauds the majority of the House Education and Labor Committee passing Rep. Kiley's resolution repealing the Biden DOL's harmful reclassification of independent contractors.
In January, the Biden DOL introduced a six-factor test to determine employment status under the Fair Labor Standards Act (FLSA). This final rule replaced the Trump-era definition of independent contracting and provided more opportunities for Americans seeking flexible work arrangements. However, the DOL says he plans to adopt “overall elements” rather than just six elements.“Situation” Economic Reality Test, considers a non-exhaustive list of factors that “in some way indicate whether the worker is in business for himself.” Although the DOL may analyze core factors such as profit and loss opportunity and degree of control, the open-ended nature of this rule gives the regulator the power to invalidate freelance work at its sole discretion. It will be done. Without a concrete definition of independent contracting, the Biden administration is free to move the goalposts whenever it wants, leaving countless Americans without a valuable source of income.
On the contrary, Republicans are vigorously defending independent contractors.
Sen. Cassidy abhorred the DOL's actions and argued that the Biden administration should not “forcefully and coercively unionize workers,” but rather “increase individual freedom and opportunity.” Representative Kiley struck a similar note, saying, “Washington should be supporting workers, not regulating them.” Their efforts have received high praise from fellow conservatives, including House Education and Labor Committee Chairwoman Virginia Foxx, RN. “I'm doing it,” he agreed.
Republicans have also expressed disgust at the apparent similarities between the recent DOL ruling and California's AB 5 law, which established the notoriously restrictive ABC test for freelance employment eligibility. This similarity is not surprising. Acting Labor Secretary Julie Su implemented this failed policy while serving as California's labor secretary before the approval impasse. Rep. Kiley argued that the DOL's ruling is “modeled after the same job-killing AB 5, which has taken away the livelihoods of millions of independent professionals across the country.” Senator Cassidy agreed wholeheartedly, warning that “California's experience with independent contractors is an example of what can happen at the federal level.”
The business community has also made it clear that the Biden administration's final rule will spell disaster for the economy. For example, Mark Friedman, vice president of workplace policy at the U.S. Chamber of Commerce, said the DOL's final rule could result in “loss of income for millions of Americans” and “significant negative economic impacts.” accused of being. Similarly, officials from the National Retail Federation and the National Federation of Independent Business have voiced opposition, predicting a sharp rise in the misclassification of workers. By repealing the DOL's new restrictive rules on independent contracting, Congress can restore essential autonomy to America's workforce and strengthen economic security for millions of families.
As lawmakers consider whether to repeal this DOL final rule, they should remember the millions of Americans who value the right to work without a boss. A return to the common-sense standard of independent contracting would once again free workers to pursue income on their own terms. Americans for Tax Reform applauds Rep. Kiley and Sen. Cassidy's efforts to ensure DOL regulators can no longer sandbag the businesses of American workers and revitalize independent labor. do.
MPs should support HJ Res. 116 and S.J. Res. 63, the CRA resolution to end Biden's crackdown on independent contractors comes to a floor vote.
