America’s entrepreneurial spirit is one of the great features of our national identity and free-market system. Tired of your employer? Quit and start your own business. Need extra income to save for a wedding? An app can connect you to work in minutes. Independent work arrangements provide the flexibility to live life on your own terms.
Leftist policymakers condemn independent work, and they are actively attempting to force all workers into traditional 9-to-5 jobs. The Biden administration imposed labor regulations meant to eliminate flexible work nationwide. Thankfully, conservatives have been fighting back. The Trump administration is specifically working to overturn Biden’s pernicious rule governing independent contractors. This effort deserves support—and so far, the public is on board.
Do you work for yourself or for someone else? The basic question of worker classification as an employee or an independent contractor has become a ping-pong game in Washington, D.C., among administrations. The Obama and Biden administrations sought to rein in independent work by tightening the standard for independent contractor status under the Fair Labor Standards Act. Elevating a multi-factor employment test that gave no factor greater weight increased complexity, uncertainty, and confusion for businesses and independent contractors. The intended effect was to chill flexible work arrangements.
The first Trump administration sought to bring clarity to the employment question by focusing regulation on two “core” or primary factors—the nature and degree of the individual's control over the work and the individual's opportunity for profit or loss. The Trump 2.0 Department of Labor has resurrected that simpler, more straightforward standard in a new proposed rule to the delight of freelancers nationwide.
The freelance world is massive. Some 73 million people—over 40% of the U.S. workforce—freelanced last year. Two out of three freelancers are independent by choice. Flexibility is not just a perk, but a necessity for many freelancers. Nearly half of freelancers (46%) would drop out of the labor force entirely because of their personal circumstances if they were constrained to traditional employment. Sickness and managing chronic diseases can also make it impossible for some people to work 9-to-5 jobs.
Preserving flexible work is extremely important to women, who make up about half of the nation’s freelance workforce. Nine out of 10 women who left traditional jobs to freelance did so for flexibility. As caregivers, independent contracting allows moms to raise children or care for aging parents. Sara B. stated in her supportive comment for the proposed rule, “I value my flexibility and independence with Instacart because I'm a mom who can only work sometimes because I don't have many people to help me watch my child so I can work. Being able to work whenever I want helps me so much.”
For seasoned workers transitioning into retirement and older Americans supplementing Social Security benefits, flexible work keeps them engaged.
Self-employment also creates an avenue for career professionals to build businesses of their own, utilizing their decades of experience and unique skills. “This rule would protect how financial professionals like me run our businesses,” said John F. in his comment of support. “The flexibility of our independent contractor status is paramount. It enables us to manage our operations efficiently, innovate, and expand our businesses. It also allows us to tailor our services to the unique needs of each client, providing personalized financial guidance that is the cornerstone of our practices.”
Regulatory uncertainty can cripple businesses, but that is what the Biden-era rule created. Others are intimidated into compliance. Income tax specialist, Eileen E., noted in her comment, “I have seen too many times situations where employers are intimidated by the current bureaucratic regulations... Small businesses do not have the resources to fight this in tax court, and so they comply regardless of the true logic and nature of the job being done, thereby costing the employer needless and more importantly, inappropriate conferment of company benefits (costly health care, retirement, unemployment, etc.).”
The Left and the ailing labor union movement condemn independent contract work for failing to provide workplace benefits. Yet that should be a workers choice. Not everyone wants or needs benefits as a part of a work arrangement. Additionally, contractors are gaining access to employment based benefits. The good news is that proposed federal legislation and state reforms would allow companies to provide portable benefits to independent contractors without forcing them to be reclassified as employees. Policymakers on the Left should get on board.
Americans know what a “good job” is for them; they don’t need Washington bureaucrats to tell them. Instead, they want policies that protect their choice for flexibility and freedom. The new DOL independent contractor rule unwinds the chaos brought on by the Biden administration. Americans must speak up in support before the comment period ends on April 28.
