U.S. Senator Shelley Moore Capito, along with 31 Senate Republican colleagues, has introduced a Congressional Review Act (CRA) resolution to overturn the U.S. Department of Labor’s final worker classification rule. The regulation, which threatens the gig economy and the ability of 27 million Americans to work as independent contractors, has sparked criticism and opposition from various quarters.
Ranking Member Capito emphasized the impact of the Biden administration’s rule on freelancers, stating, “This rule from the Biden administration places unnecessary burdens on freelancers and makes it harder for them to work in a way that best fits their individual needs and schedules. Overturning this rule would take power away from bureaucrats in Washington and give individuals the freedom to work on their own terms.”
The Biden administration’s rule aims to restrict the ability of American workers to be independent contractors and utilize the flexibility this status offers. It establishes a six-factor litmus test for unelected bureaucrats to determine independent contractor classification, creating legal uncertainties and limitations for those affected.
Numerous organizations, including the American Trucking Associations (ATA), the Associated Builders and Contractors (ABC), and the U.S. Chamber of Commerce, have expressed opposition to the new policy. U.S. Rep. Kevin Kiley introduced a companion CRA resolution in the House of Representatives.
The introduction of the CRA resolution signals a bipartisan effort to challenge the regulation and protect the interests of millions of independent contractors across the country.
