OSP OPPOSES U.S. DEPARTMENT OF LABOR’S PROPOSAL TO ABANDON THE “INDEPENDENT CONTRACTOR RULE”

| Workforce

Tallahassee, FL — This week, Opportunity Solutions Project (OSP) publicly commented on a proposed rule by the U.S. Department of Labor (DOL), which seeks to adopt a new test to determine whether an individual is an employee or independent contractor. The new rule, if finalized, would be more complicated and confusing, and would hinder economic opportunities for independent contractors.

Workers seeking flexibility enjoy the independent contractor classification. It allows “gig” workers from all walks of life, such as entrepreneurs, individuals with disabilities, working parents, and rural workers, to control their schedule or work/life balance while increasing their income. If forced to be classified as an employee, many workers would lose opportunities with clients, causing willing workers to drop out of the workforce.

“California’s controversial and convoluted worker-status law should have been a warning to the rest of the country,” says Haley Holik, visiting fellow at OSP and author of the public comment. “For tens of millions of workers, DOL’s proposed rule complicates their ability to set their own work arrangements and risks reducing economic opportunities at a time when we need more workers to participate.”

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The Opportunity Solutions Project is a non-profit, non-partisan advocacy organization that specializes in health care, welfare, and workforce reform.