The final Independent Contractor Rule of the United States Department of Labor went into effect Monday. This rule hurts 64 million independent professionals across the country. Rep. Kevin Kiley, D-CA, sent a request to Acting Secretary Julie Su asking her to pause the implementation of the rule.
Due to the legal issues surrounding the final rule, I request that the rule be delayed until the litigation is resolved.
This rule has been challenged in at least five lawsuits. RedState has extensively covered this issue.
The U.S. Chamber of Commerce and the Coalition for Workforce Innovation joined forces in a lawsuit filed against the rule just this week.
In light of several ongoing legal challenges, I am calling on Acting Secretary Su to suspend today’s effective date for the Independent Contractor rule. pic.twitter.com/uSZTSZm1ZT
— Rep. Kevin Kiley (@RepKiley) March 11, 2024
A U.S. District Court Judge also ruled against the National Labor Relations Board’s (part of the Department of Labor), attempt to enforce the joint-employer rules, which would have also affected small businesses. The Biden administration is using a variety of tactics to attack America’s small business, the engine of our economy. Kiley ended his letter by discussing the confusion that this vague rule had already caused independent professionals as well as small businesses.
Workers and businesses in our country need clarity and stability. The confusion and disruption are exacerbated by a decision to implement the rule before the courts have finished their review. Uncertainty is the enemy of growth and prosperity. All of this can be avoided by pausing the rule while the Courts finish their work. Take this simple, prudent step to save American jobs.
Kiley wrote to Su to ask for a pause in the IC Rule. In addition, 31 policy groups have banded together and asked Congress to take action against this rule. The Institute for the American Worker published:
31 organizations have sent a letter of concern to the U.S. Congress about the impact of the new rule on entrepreneurs, which would classify many independent workers against their will as employees.
The coalition letter explains that Su, in her capacity as acting secretary, has incorporated similar tests from California’s AB5 laws into the rule. The coalition notes that Su’s focus on small businesses and entrepreneurs played a major role in her failure to be confirmed as Secretary of Labor.
The letter begins:
The fact that Acting Secretary Su supported California’s law limiting independent contracting played a major role in Congress’s decision to reject her nomination as Secretary of Labor. Congress can reject her attempt at imposing this regulation on the American people with a similar intent.
The Congressional Review Act will stop this rule from being implemented, and we hope Congress will take action to protect the independent contractor industry in America.
This is a list that includes the groups who oppose this attempt to circumvent the Constitution and the assault on individual rights.
- Advancing American Freedom
- Center for the American Worker, America First Policy Institute
- American Society of Journalists and Authors Americans for Limited Government Foundation
- Americans for Prosperity
- Americans for Tax Reform
- California Business and Industrial Alliance Save Independent Work Coalition
- Center for Freedom and Prosperity
- Colorado Policy Pathways
- Competitive Enterprise Institute
- Cypress Language Services
- Freedom Foundation
- Freelancers Against AB5
- Heritage Action For America
- Hispanic Leadership Fund
- Illinois Policy Institute
- Independent Women’s Forum
- Institute for the American Worker
- Institute for Liberty
- Job Creators Network
- Liberty Justice Center
- Libre Initiative
- Mackinac Center for Public Policy
- National Taxpayers Union
- New Jobs America
- Open Competition Center
- Small Business & Entrepreneurship Council
- State Policy Network
- Thomas Jefferson Institute for Public Policy
- Workplace Policy Institute
Today marks one year since Julie Su was installed as “Acting” Secretary of Labor. She’s marking the occasion by bringing Newsom’s AB 5 catastrophe to the whole country.
Biden is nationalizing California’s failures and isn’t letting the Constitution get in the way.
— Kevin Kiley (@KevinKileyCA) March 11, 2024
On March 6, Rep. Kiley and Sen. Bill Cassidy, both Republicans from Louisiana, introduced a joint Congressional Review Act resolution (CRA) to overturn this rule.
“We applaud @SenBillCassidy & @RepKiley for introducing this Congressional Review Act resolution to overturn the @USDOL’s devastating new independent contractor rule.” 👏 @PatricePinkFilehttps://t.co/EXyqJVDyar
— Independent Women’s Voice (@IWV) March 7, 2024
Contact your elected representatives to urge them to support CRA. This rule is a threat to the small business sector, the backbone of the American economy. It also undermines the ability of entrepreneurs to innovate and build.
