Ranking Member Scott on DOL’s Radical Independent Contractor Rule that Robs Workers of Overtime Pay and Fair Wages

Ranking Member Scott on DOL's Radical Independent Contractor Rule that Robs Workers of Overtime Pay and Fair Wages

WASHINGTON - Ranking Member Robert C. "Bobby" Scott (VA-03), House Committee on Education and Workforce, released the following statement after the Department of Labor (DOL) announced a proposed rule on the classification of independent contractors under the Fair Labor Standards Act (FLSA). DOL's rule would narrow its interpretation of who is considered an employee under the FLSA.

"Today, the Department of Labor proposed a rule that will make it more difficult for workers who have been misclassified as independent contractors to receive overtime pay, fair wages, and other basic rights under the Fair Labor Standards Act.

"By codifying the pervasive trend of employers misclassifying their employees as independent contractors, the proposed rule will strip workers of their basic wage and hour protections and leave law-abiding businesses at a competitive disadvantage. Unlike employees, independent contractors do not get essential protections, such as minimum wage, overtime, unemployment compensation, workers' compensation, access to employee healthcare and benefits, pensions, or OSHA protections.

"The Economic Policy Institute previously estimated that a similar rule would cost workers more than $3 billion each year. This is a devastating consequence for working families who are already struggling in the Trump-Vance economy and are now dealing with devastating health and food assistance cuts from Republicans' 'One Big, Ugly Law.' Too many people who work hard cannot afford basic expenses to have a good life - like owning a home, taking your family on vacation, or going out to eat every once in a while. This new proposal will put those things even further out of reach."

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