A proposed rulemaking from the U.S. Department of Labor to redefine the definition of an independent contractor would restrict the earning potential of 50 million working Americans who hold such positions, according to U.S. Rep. Michelle Steel (R-CA).
“There are more than two million independent contractors and entrepreneurs across California,” Rep. Steel said. “The administration would be foolish to kneecap them by returning to this unworkable Obama-era policy.”
The Labor Department’s proposed rule, which was published in the Oct. 13 Federal Register, would modify Wage and Hour Division regulations to revise its analysis for determining employee or independent contractor classification under the Fair Labor Standards Act to be more consistent with judicial precedent, as well as the law’s text and purpose. Comments on the proposal are being taken until Nov. 28.
According to Rep. Steel, the proposed rule would return to the Obama administration’s more narrow definition of independent work, subject more workers to restrictions imposed by employee designations, raise costs on employers, and directly impact worker flexibility.
“As Americans are struggling to make ends meet under the crippling weight of the inflation this administration caused, we should be giving workers more flexibility and opportunity to earn, not tying their hands and imposing union-backed restrictions on how and when they can work,” said the congresswoman on Wednesday.
Rep. Steel’s comments are part of her ongoing efforts to advocate for independent workers. In March, she cosponsored the GOP-led, bicameral Modern Worker Empowerment Act, H.R. 1523/S. 526, which would require the use of common law rules for defining an employee under the Fair Labor Standards Act.
Generally, an individual is an employee under common law rules when an employer controls what work will be done and how it will be done, among other factors, according to the congressional record summary for the measure.
In July, Rep. Steel also introduced the bipartisan Worker Flexibility and Choice Act, H.R. 8442, to provide workers with schedule flexibility and choice. U.S. Rep. Henry Cuellar (D-TX) sponsored the pending bill.
Both measures remain under committee consideration.