Press Releases

A bicameral comment letter, led in the House by Education and Labor Committee Republican Leader Virginia Foxx (R-NC), was sent today to Department of Labor (DOL) Secretary Marty Walsh opposing DOL’s confusing and burdensome proposed rule regarding independent contractors.

In the letter, the Members write: “We oppose this proposed rule as it is unclear, overly restrictive, and unsuitable for workers who are seeking flexibility as they pursue opportunities as independent contractors. … DOL’s new proposal is far less clear than the 2021 rule and is largely a return to the Obama-era multifactor test that was restrictive, overly complex, and inconsistently applied.”

The Members continue: “The independent contractor proposed rule would have immediate and long-term disruptive effects on millions of workers and thousands of businesses at a time when the economy is facing high inflation rates. A study by Upwork estimates that 59 million Americans performed freelance work in 2021 and contributed $1.3 trillion to the U.S. economy. Small and large businesses in hospitality, healthcare, education, agriculture, transportation, construction, finance, law, housing, entertainment, and more utilize independent contractors to meet their needs. This allows businesses to have a dynamic workforce while giving workers the autonomy and flexibility they prefer. It is clear the proposed rule’s attempt to restrict this flexibility for businesses and workers will be disruptive.”

The Members conclude: “The proposed rule is also overwhelmingly unpopular. Our offices have heard from various individuals and groups worried that this proposed rule will destroy the flexibility and entrepreneurial opportunity that comes with being an independent contractor. … Individuals such as ride-share and delivery drivers, financial advisors, direct sellers, truckers, and franchisees view their independent contractor status as enabling the pursuit of the American Dream. … We urge DOL not to move forward with its proposed rule for determining independent contractor classification due to this negative impact on workers and businesses, the test’s lack of clarity, and the devastating consequences for the U.S. economy.”

Read the full letter here.

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