Written by Elizabeth Nader
American dream. This is a concept deeply woven into the fabric of our country, and each individual’s interpretation is as unique as a fingerprint. For my husband and I, it meant leaving the confines of corporate America and forging a path as entrepreneurs. From that pivotal moment, we embarked on a journey to launch several businesses. Each of these businesses is a testament to our passion, aspirations, and willingness to accept both successes and setbacks on our own terms.
It is this opportunity to shape our destiny that embodies the essence of the American economy: a landscape defined by its dynamism and resilience.
The hallmark of the American Dream is the unparalleled freedom and ingenuity it offers in shaping an individual’s destiny, a freedom not readily available elsewhere in the world.
But this hallmark of American business faces new threats. In March, U.S. Department of Labor officials introduced tough regulations aimed at redefining the classification of “independent contractors” (commonly known as 1099 workers) and imposing hefty fines on companies that misclassify workers. I suggested that.
In essence, these new regulations jeopardize the very foundations of flexibility and autonomy that underpin countless forms of entrepreneurship. The proposed rules would significantly reduce 1099 job opportunities and force individuals into traditional employment structures. This change not only stifles entrepreneurship, but also creates significant barriers for aspiring innovators looking to turn ideas into viable businesses.
As we reflect on our own entrepreneurial journeys, we are reminded of the integral role independent contractors have played in our success. Being able to hire people on a project basis without the burden of full-time work helped us get through the early stages of our business. This agility, the ability to quickly pivot in response to evolving market demands, defines the essence of a lean startup.
But with the threat of overregulation looming, entrepreneurship is facing an existential threat. Rising costs associated with compliance are deterring many from pursuing their dreams, while risking rendering the gig economy, a lifeline for countless individuals, obsolete.
California’s cautionary tale serves as a stark reminder of the consequences of such misguided policies. After enacting a similar law, the state witnessed a sharp decline in small businesses and the sudden disappearance of 1,099 jobs. Many disillusioned entrepreneurs took refuge elsewhere, only to now find themselves facing the same regulatory hurdles on a national scale.
Its impact extends far beyond the realm of business and has a profound impact on the lives of individuals, especially women who find empowerment and autonomy through independent work. As Congress considers the fate of these regulations, it is imperative that we voice our concerns and demand action.
For all consumers who enjoy the products and services offered by innovative startups, and for all individuals seeking to make their own path in pursuit of the American Dream, now is the time to speak up. Contact your Congressman and urge them to use the Congressional Review Act to protect the essence of what makes America great: entrepreneurship.
The choice is clear. We can sit back and watch as regulators determine the contours of our dreams, or we can seize the opportunity to shape a future where entrepreneurship thrives and personal autonomy is paramount.
Not only is this regulation not “building back better” as promised by the current administration, it is “not building at all.”
Elizabeth Nader is a member of the Board of Directors. Jersey 1st placedescribes itself as dedicated to educating and serving New Jersey’s hardworking people by advocating for responsible policies that make New Jersey a better place to work, learn, live, and retire. It is a non-profit organization. She is the host of “The Nader Narrative” on Jersey 1st TV, her COO of Common Sense Club, and is also a coach, entrepreneur, and author.
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