listen to this articleThe Department of Labor has enacted new rules that will make life very difficult for independent contractors like me. But Congress has a chance to stop it.
As a freelance writer, editor, and ghostwriter based in the Greater Phoenix area for over 30 years, I’ve witnessed many changes in the economic landscape, but none more threatening than this new rule from the DOL. Under Acting Secretary of Labor Julie Su’s oversight, millions of independent contractors across the country could be misclassified as W-2 employees against their will.
Sen. Bill Cassidy (R-Louisiana) and Rep. Kevin Kiley (R-Calif.) introduced a joint resolution to block this overreach. Their efforts to utilize the Congressional Review Act represent an important check on the authority of government agencies and offer a ray of hope for reversing this counterproductive and anti-business policy.
The potential impact of this rule is significant.a study The Chamber of Progress projects that more than 3.4 million independent contractors will face direct revenue losses totaling more than $30 billion. Freelance work has grown in Arizona. 255 percent From 2010 to 2020, this change could devastate more than 500,000 independent businesses. Potential reclassification threatens not only individual livelihoods, but also the vitality of small businesses across the state.
By blurring the definition of independent contracting, the new rules add complexity and uncertainty, not clarity, for us as freelancers and for our clients. Freelancing has always been about mutual benefit and flexibility. Companies can take advantage of our specialized skills without the overhead of a full-time employee, and we enjoy the freedom to choose our projects and control our schedules. It’s a simple system. If the partnership doesn’t work out, we part ways. But the new rules seek to dismantle this dynamic by promoting a more rigid employment model that many of us are trying to avoid.
Proponents of this rule argue that it is for our protection and that it provides stability and benefits. But whose stability are we talking about? Which government expects a steady flow of tax revenue? Or do more unions want more dues from organized employees?
Julie Sue and her union leadership allies are trying to dictate what is best for us without understanding or recognizing the nuances of self-employment.
This is a restriction, not a protection. This regulation limits our ability to operate freely and set our own professional paths. By promoting this one-size-fits-all approach, the DOL is not protecting anyone. It seeks to lock independent contractors into a system that many people have deliberately chosen to reject.
Without Congressional intervention, we risk a repeat of California’s AB 5 debacle. significant loss of income Many freelancers were forced to relocate or quit their jobs. Arizonans don’t want our state to become California.overwhelming 82 percent of Arizona voters support independent contractors’ right to choose their employment status. The DOL’s own data also shows that: 79 percent of independent contractors prefer flexible arrangements over traditional roles.
Freelancers like me are small business owners and entrepreneurs who contribute to the economy and culture of innovation. We need policies that support independence, not bureaucratic intervention in the name of protection.
Jake Poynier founded Boomvang Creative Group, a Phoenix-based editorial services company, in 1999.
