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Thursday, May 9, 2024

Braun, R. Scott Oppose DOL Independent Contractor Rule

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Mike Braun - Ranking member of the Senate Special Committee on Aging | Official U.S. Senate headshot

Mike Braun - Ranking member of the Senate Special Committee on Aging | Official U.S. Senate headshot

U.S. Senators Mike Braun and Rick Scott have expressed their opposition to the Department of Labor's (DOL) Independent Contractor Rule in a letter addressed to Acting Secretary Julie Su. In the letter, the Senators outline their concerns about the rule's impact on the gig economy and its potential to limit opportunities for older Americans.

The Senators argue that the Independent Contractor Rule, which provides guidelines for classifying independent workers as employees, will have a detrimental effect on independent work. They cite experts and stakeholders who have warned that the rule will lead to weaker and more complicated guidelines, ultimately resulting in a decline in independent work opportunities.

Highlighting the significance of independent work for older adults, the Senators emphasize that it offers flexible hours, supplemental income, and the ability to balance caregiving responsibilities. They note that these benefits have become even more important in recent years due to the COVID-19 pandemic and the resulting economic challenges.

The Senators also stress that older Americans should not be forced to "un-retire" due to financial difficulties. However, they argue that the Independent Contractor Rule will further restrict the gig economy, which serves as a critical safety valve for older workers who have been pushed back into the labor market due to inflation.

Drawing attention to the impact of similar restrictions in the past, the Senators point out that job losses have been significant. They highlight that older Americans working in various independent positions, such as electricians, consultants, truck drivers, and seasonal workers, will face threats to their income, security, and peace of mind under the Independent Contractor Rule.

In conclusion, the Senators call on the DOL to reconsider the Independent Contractor Rule and return to the clear and economically effective standards established during the Trump administration. They urge the DOL to recognize the importance of independent work for older adults and develop a deeper understanding of its significance.

The full letter can be accessed here.

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