DOL Independent Contractor Rule Debated

The Department of Labor’s recent proposal regarding the classification of independent contractor rules was recently debated during a hearing of the House Subcommittee on Workforce Protections, with Republican’s blasting the proposal.

The Financial Services Institute, a trade organization that represents independent financial advisors, has been battling the DOL proposal since its introduction, charging that “scores of investors across the country will likely lose access to affordable and professional financial advice and services” should the rule go into effect.

As The DI Wire previously reported in October 2022, the new rule would replace a Trump administration regulation that allowed workers who own their own businesses or have the ability to work for competing companies to be treated as contractors. The Financial Services Institute previously requested that the Department of Labor extend the comment period for an Independent Contractor Rule Proposal.

According to Rep. Kevin Kiley (R-Calif.), chair of the Subcommittee on Workforce Protections, “Our committee has a very different vision for the American workforce. We believe in promoting work and supporting workers. We believe independent contractors are critical to the 21st century economy. We will protect the freedom of Americans to earn a living as they choose and will fight every effort to take that right away.”

However, the Biden Administration claims that the gig economy costs workers benefits and the IRS tax revenues. Currently, Biden is pushing for votes in the U.S. Senate to confirm his nominee to lead the DOL, former California Labor Secretary Julie Su. During her role as head of the California Labor Department, Su defended the state’s independent contractor rule, which Kiley charges has resulted in significant damage to the California economy.

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