Staff Reports
On March 11, 2024, the United States Department of Labor’s Final Rule on Independent Contractors became official, despite facing legal challenges and opposition from Congress. This new rule has instantly harmed independent professionals and small businesses across the country. The Financial Services Institute, representing independent financial advisors, previously sued the DOL for repealing the 2021 Independent Contractor Rule established under the Trump administration. The ongoing legal battles showcase how government overreach hurts hardworking Americans trying to make a living.
The Biden administration’s push for stricter regulations on independent contractors will have a detrimental impact on minority groups, such as Black and African American financial advisors. By forcing more individuals to be classified as employees rather than independent contractors, the new rule could lead to higher costs for businesses and reduced flexibility in serving clients. This heavy-handed approach undermines the ability of minority advisors to thrive and provide for their communities.
The U.S. DOL's Final Rule on Independent Contractors is a blow to small businesses & independent professionals. Minority groups are disproportionately affected.
Independent contractor rule adversely impacts Black and Hispanic workers. Falsely… https://t.co/AFEgVOPvDv
— The America One News (@am1_news) May 17, 2024
Hispanic communities, especially Hispanic women, heavily rely on independent contract work to support their families. The expanding gig economy offers opportunities for immigrants, women, and low-income individuals to enter the labor market and earn income. However, the DOL’s restrictive rule changes threaten to diminish these pathways to financial independence and success for many vulnerable groups.
The continuous changes and uncertainties in the regulatory environment create obstacles for businesses and entrepreneurs striving to succeed. Acting Secretary of Labor Julie Su’s agenda seems to prioritize union interests over the well-being of independent workers and small enterprises. Her actions raise concerns about the administration’s commitment to economic freedom and prosperity for all Americans. Some lawmakers have called for Su to step down due to her ineffective leadership and damaging policies that hinder economic growth and opportunity.
In conclusion, the Biden administration’s crackdown on independent contractors through the DOL’s Final Rule threatens the livelihoods of hardworking Americans and undermines the entrepreneurial spirit that drives our economy. It is crucial to uphold individual freedom and economic liberty by resisting excessive government intervention and protecting the rights of independent workers to choose their own path to success.
