One issue that over 70 million people who freelance, are self-employed, or do gig work must grapple with is how to protect their livelihoods and independence from a heavy-handed federal government.

New regulations under the Biden-Harris Administration make it more difficult for independent contractors to remain independent. Vice President Harris has signaled she would sign even harsher restrictions on independent contractors into law. On the contrary, when in office, former President Trump simplified the regulations to make them clearer and easier to establish independent status.

As Americans decide who will lead the nation over the next four years, they must consider how the crackdown on independent contractors—in a bid to boost unions—could erode their economic freedom.

In March 2024, the Biden-Harris Department of Labor finalized a rule that changes the definition of who can be classified as an independent contractor according to federal law. By implementing a multi-factor test that gives no weight to any particular factor, the new rule heightens uncertainty and confusion among businesses and the independent contractors they employ.

Over 70 million Americans today engage in independent work. These individuals are self-employed entrepreneurs, small business owners, and gig workers. They may work full-time, part-time, or hold side hustles. Independent workers are not employees but independent contractors, and they like it that way. In 2024, nearly two-thirds (61%) worked independently by choice, while only 10% did so because of factors beyond their control, and a quarter (27%) said it was a combination of both.

The benefits are myriad:

  • 84% of full-time independents say they are happier working on their own. 
  • 65% say they feel more secure working independently.
  • 79% say that working on their own is better for their health.

About half of freelancers are women. Flexibility is overwhelmingly the driver for women, who seek to balance income generation with other priorities, particularly caregiving for children or aging parents.

The next leaders in Washington have an opportunity to fight for economic freedom by overturning the Biden-Harris regulations on independent contracting. Unfortunately, the current Congress did not overturn the rule using the Congressional Review Act—a missed opportunity.

President Biden and Vice President Kamala Harris have vowed to pass the Protecting the Right to Organize Act (PRO), which includes even harsher restrictions on who can be classified as independent contractors. The PRO Act copies and pastes California’s Assembly Bill 5 (AB 5), a mass reclassification that left self-employed individuals and freelancers out of work. 

The next administration has a decision to make: overturn the DOL independent contractor rule or double down on the hardship. 

As the dust settles on the 2024 election and we understand who will take the reigns of leadership in Washington, we hope that the freedom of independent contractors will be prioritized. 

At a time of elevated prices, women and workers need more opportunities to earn a living or extra income on their schedules. Our dynamic economy is innovating new models of work and we need our leaders to protect them.