Congressional Republicans are pushing back against a US Department of Labor worker classification rule that would make it more challenging for companies to designate workers as independent contractors. Sen. Bill Cassidy (R-La.) and Rep. Kevin Kiley (R-Calif.) introduced a Congressional Review Act resolution to overturn the DOL’s independent contractor rule, which is scheduled to go into effect on March 11. Cassidy, the top Republican on the Senate Health, Education, Labor, and Pensions Committee, and Kiley, who heads the House Education and the Workforce Subcommittee on Workforce Protections, are leading the charge against the new regulation.
The new standard proposed by the Department of Labor aims to tighten the criteria for classifying workers as independent contractors, a classification that does not entitle workers to the same benefits and protections as employees under federal wage and hour laws. This rule has faced criticism from various sectors of the business community, particularly app-based companies like Uber Technologies Inc. and Lyft Inc., who argue that it will have a detrimental impact on the gig economy.
Republicans and business leaders are concerned that the regulation will limit flexibility for workers who prefer the independence of being self-employed. They argue that the rule will impede the ability of workers to set their own hours and earn a living without being pressured into joining a union. Several lawsuits have been filed against the rule, alleging that it exceeds the DOL’s authority and is overly broad in its scope.
In response to the criticism, Sen. Cassidy stated, “The Biden administration’s priority should not be to do whatever makes it easier to forcibly and coercively unionize workers. It should be to increase individual freedom and opportunity.” He believes that the new rule undermines the ability of 27 million workers to maintain their independence and make a living on their terms.
On the other hand, the Biden administration and congressional Democrats have defended the rule, arguing that it is necessary to combat the misclassification of workers. They believe that the regulation is essential for protecting workers’ rights and ensuring fair labor practices.
The Congressional Review Act provides Congress with the authority to overturn regulations through a resolution that must pass both chambers by a simple majority and be signed by the president. However, President Joe Biden has vetoed all nine CRA resolutions that have reached his desk during his tenure. This latest resolution is part of a series of efforts by Republicans to block labor regulations, including a recent attempt to overturn a DOL rule on sustainable investing by retirement plans.
In conclusion, the battle over the DOL’s independent contractor rule highlights the ongoing debate between Republicans and Democrats on labor policy. While Republicans argue that the rule threatens workers’ independence and flexibility, Democrats maintain that it is necessary to protect workers from exploitation and ensure fair labor practices. The outcome of this legislative showdown will have far-reaching implications for the future of the gig economy and the rights of independent contractors across the country.
