Former U.S. Representative Lori Chavez-DeRemer faced tough questions during her Senate confirmation hearing to lead the Department of Labor (DOL).
While the DOL cabinet position is not as glamorous as other positions, it is highly consequential. The policies from this agency affect 77 million women working today—47% of the U.S. workforce. From minimum wage to overtime regulations and independent contractors to traditional employees, the DOL head sets the labor agenda of the administration.
Worker freedom—the choices each man and woman makes about the time and labor—has been under attack during the previous Biden administration. Chiefly, the choice to work for oneself (independent contracting) has been on the chopping block.
New regulations by the DOL finalized last year changed the standard to determine if a person can be classified as an independent contractor or an employee. The new multifactor test they adopted is ambiguous and introduces uncertainty for businesses and independent workers. It’s created a chilling effect on self-employment, freelancing, and gig-economy work. This is a direct attack on women who overwhelmingly seek flexibility over traditional employment.
As I wrote in the Washington Examiner prior to the confirmation hearing,
Women want flexibility. The Biden administration waged war on entrepreneurs and sought to snuff out the flexible, independent contracting opportunities that make it possible for millions of women to work. However, the Trump administration can win with women if it protects every person’s freedom to work as they see fit.
I posed a few questions in that op-ed for senators to ask the nominee. Generally, her answers answered those questions.
Here are three key moments from the labor secretary’s hearing on independent contracting:
1. On protecting independent contractors:
Senator Bill Cassidy (24:47):
Approximately 27 million workers work as independent contractors, including working moms, caregivers, self-employed business owners. Now, for many, the flexibility of independent work is essential to balancing personal responsibilities and earning a living for their family.
I will point out that the PRO Act tried to impose a one-size-fits-all rule, which as was done in California, disrupted livelihoods instead of helping workers. So question, if confirmed as secretary, will you commit to refrain from implementing any rules, stripping independent contractors the flexibility they need to provide for their families and to simultaneously contribute to the American economy?
Representative Chavez-DeRemer (25:32):
Thank you, Senator. Certainly, we’ll commit to understanding this. I know the president in the first administration set out that rule. And the parameters is very important to him on the flexibility of who is an independent contractor and who is an employee, and that they’re properly classified.
But I commit to working with you on supporting independent contractors through this process because that flexibility is what needed. I understand, as you’re mentioning in the PRO Act, but again, as I mentioned, that bill wasn’t perfect and these are those conversations that needed to be have, and supporting that independent contractor is key to growing this economy.
2. On federal portable benefits for independent contractors:
Senator Cassidy (26:08):
Now, supporting that independent contractor, and something I’m very interested in, is how do we provide the independent contractor with more affordable health and retirement benefits without losing that work flexibility? If you will, the employer, the person contracting with them, not an employer, would nonetheless be able to give them access to such benefits. I’m asking you if you’ll work with me and with our committee on legislation to make sure that the independent worker and the small business are able to get the affordable benefits available to ordinary employees at larger companies?
Representative Chavez-DeRemer (26:42):
Yes, sir. I will commit to working with you wholeheartedly on this issue.
3. On right-to-work laws:
Sen. Rand Paul (34:08):
So you no longer support the aspect of the Pro Act that would’ve overturned state right-to-work laws?
Representative Chavez-DeRemer:
Yeah, there were so many parts-
Sen. Paul:
That’s a yes?
Representative Chavez-DeRemer:
Yes. Yes, sir.
Rep. Chavez-DeRemer has made commitments to protect independent contractors and not place a thumb on the scale in favor of one form of work over another.
In addition, she is committed to upholding President Trump’s agenda, which supports small businesses and entrepreneurship.
We will watch how this plays out. More importantly, if she becomes the next U.S. Labor Secretary we will be watching to ensure that she delivers on her promises and works with Congress to undo the Biden regulations on independent contractors, franchises, and right-to-work states as well as to advance good policies that addresses the needs of American workers.
We are encouraged that Rep. Kevin Kiley (R-CA) has introduced two federal bills: one to codify the more independent-contractor-friendly standard from the Trump 1.0 administration, and the other to make portable benefits possible nationwide.
Bottom Line
Worker freedom depends on women and men choosing which work arrangement best suits them and their families. We need a champion for worker freedom, not an adversary as we’ve had for the past four years. We hope that Rep. Chavez-DeRemer will be that champion. Taking away opportunities and forcing workers into unions is the antithesis of worker freedom, it’s worker servitude.
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