Westbank Louisiana News

WASHINGTON - The Department of Labor's (DOL) new worker classification rule, which aims to dismantle the gig economy and potentially impact the livelihoods of 27 million Americans working as independent contractors, is facing growing opposition from various organizations. U.S. Senator Bill Cassidy, ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, has announced his intention to introduce a Congressional Review Act (CRA) resolution to repeal the final rule.

Among the organizations that have expressed their opposition to the regulation are the American Trucking Associations (ATA), Associated Builders and Contractors (ABC), the Coalition for Workforce Innovation (CWI), the Independent Women's Forum (IWF), the National Federation of Independent Business (NFIB), TechNet, and the U.S. Chamber of Commerce.

Chris Spear, President and CEO of the American Trucking Associations, emphasized the importance of preserving the freedom of individuals to choose work arrangements that suit their needs and aspirations. He stated, "More than 350,000 truckers choose to work as independent contractors because of the economic opportunity it creates and the flexibility it provides, enabling them to run their own business and choose their own hours and routes."

Ben Brubeck, Vice President of Regulatory, Labor and State Affairs at Associated Builders and Contractors, expressed concern about the ambiguous and difficult-to-interpret standard for determining independent contractor status. He said, "Regrettably, the confusion and uncertainty resulting from the final rule will cause workers who have long been properly classified as independent contractors in the construction industry to lose opportunities for work."

The Coalition for Workforce Innovation (CWI) expressed disappointment with the Department of Labor's final rule, stating that it undermines flexible, independent work for millions of Americans and creates more uncertainty for both independent workers and businesses throughout the economy. Evan Armstrong, Chair of CWI, added that the rule fails to provide an appropriate rationale for overturning the Department's previous regulation.

Patrice Onwuka, Director of the Center for Economic Opportunity at the Independent Women's Forum, criticized the rule for attacking the entrepreneurial spirit in America and negatively impacting working women who depend on independent, flexible work. She stated, "Millions of women nationwide choose to be their own boss to balance work with other important priorities such as raising children, caregiving to aging parents and sick spouses, or managing their own health conditions."

The National Federation of Independent Business (NFIB) expressed concerns about the confusion and risk of misclassification that the DOL's multifactor test may create. Beth Milito, Executive Director of the Small Business Legal Center at NFIB, warned that changing the standards that determine whether a worker is an independent contractor will lead to more frequent worker misclassification and frivolous lawsuits.

TechNet, an organization representing the technology industry, highlighted the negative impact of the rule on gig economy workers and their ability to provide for their families and grow their businesses. Linda Moore, President and CEO of TechNet, urged Congress to take quick action to protect these hardworking Americans and prevent the rule from going into effect.

The U.S. Chamber of Commerce also voiced opposition to the new regulation, stating that it is biased towards declaring most independent contractors as employees, which would decrease flexibility and opportunity for millions of Americans. Marc Freedman, Vice President of Workplace Policy at the U.S. Chamber of Commerce, emphasized that the rule is unnecessary, as the Department continues to report success in cracking down on bad actors that misclassify workers.

As opposition to the Department of Labor's new worker classification rule grows, organizations are considering various options, including litigation, to protect the interests of independent workers and the economy. Senator Bill Cassidy's introduction of a Congressional Review Act resolution reflects the concern and determination to repeal the final rule and safeguard the gig economy and the livelihoods of millions of American workers.