Comment from Americans for Tax Reform Digital Liberty Center for Worker Freedom

Americans for Tax Reform, Digital Liberty, and the Center for Worker Freedom support the Department of Labor’s proposed rule regarding Independent Contractor Status under the FLSA, 29 CFR Parts, 780, 788, and 795. Americans should be free to pursue work opportunities as independent contractors. This allows them the flexibility to meet personal and household needs. Tens of millions of Americans enjoy and rely upon the freedom that comes with being an independent contractor.

Independent contractors are under attack by labor unions. The union bosses want to place barriers between Americans and meaningful and flexible work opportunities. They want to force independent contractors to have a boss, preferably them.

The Department of Labor’s “economic reality” test provides a simple and clear differentiation between a worker’s status as an FLSA employee or an independent contractor by rightfully considering whether a worker is in business for themselves (an independent contractor) or is economically dependent on an employer for work (an employee). The test reflects concise, common-sense principles easily understood by American workers while prioritizing the realities of a 21st-century workforce over the desired outcomes of politically connected labor unions.

Additionally, the proposed rule correctly identifies core factors that constitute an independent contractor, including the level of which a worker maintains control over their work, the worker’s opportunity for profit or loss based on the initiative and investment placed into their own work, and the degree of permanence in the relationship.

The proposed rule provides clarity for individuals and businesses. The freedom to be an independent contractor provides dynamism to all communities and is a key part of the American dream. During and after the Covid-19 pandemic, households and businesses need independent contractor freedom more than ever.

Comment ID: WHD-2020-0007-1773 | 26-Oct-20

Categorized under Independence

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