National Small Business Week: Congress Cannot Let the Labor Department’s Independent Contracting Rule Stand

“This Small Business Week we celebrate the small enterprises making big impact across our economy, especially those women-owned enterprises. Women own over 12 million small businesses in the U.S., and that number is growing because they value flexibility and the freedom to work for themselves.

“However, entrepreneurs, mom-and-pop shops, and self-employed Americans face great risks to their livelihoods. The Department of Labor’s new rule determining who is an employee or independent contractor will have devastating effects on self-employment. These new restrictions will make it more difficult for independent contractors to retain this status. The rule will have a disproportionate impact on women, who comprise over half of the nation’s 60+ million freelancers, and women-owned businesses that depend on freelancers. The sharp declines in California’s self-employed and overall workforce after similar restrictions were implemented should be a cautionary tale to federal policymakers. 

“Small business optimism is at a 12-year low. Headwinds of inflation, falling sales, rising labor costs, and increased regulations are weighing down the nation’s economic engine. Congress cannot let ill-advised labor regulations compound their hardships.”