Come Together to Inspire, Interact, Influence, and Impact.

Log Out? Are you sure you want to log out?
Log Out
IWN Staff
May 4, 2023 - 2 minutes
facebook linkedin twitter telegram telegram

In 60 Seconds: Independent Contracting Threats

Independent Contracting Threats

*Independent Contracting Threats (PDF Download)

Today, 60 million Americans—39% of the U.S. workforce—freelance. Workers overwhelmingly choose independent contracting because they can earn more income and enjoy greater flexibility, fulfillment, and work-life balance than if they were employees.

Women value flexibility. Independent contracting is important to stay-at-home mothers, caregivers, retirees, students, and people with disabilities, chronic illnesses, and health conditions that prevent them from working in a traditional job. Independent status is not the last resort; 64% of freelancers are working independently by choice.

Most freelancers are skilled professionals across a wide variety of occupations such as computer programmers, marketing professionals, event planners, optometrists, artists, transcribers, and writers. The sharing economy has also expanded gig opportunities through ridesharing, delivery services, and tasks.

Reclassification Destroys Flexible Opportunities

Congress, federal agencies, and states are pushing for greater restrictions on self-employment. Lawmakers and regulators seek to reclassify tens of millions of independent contractors as employees, even if they prefer their status, through:

  • Protecting the Right to Organize (PRO) Act (passed the House in the 117th Congress)
  • Department of Labor’s proposed rule for independent contractors
  • National Labor Relations Board (NLRB) considering changes to its independent contractor status test.

Similar restrictions on independent contractors were enacted in California (AB5) under the guise of protecting workers’ rights. In reality, AB5:

  • Destroyed many flexible work arrangements causing workers to lose their livelihoods.
  • Severely reduced opportunities for state-based critical service providers that serve vulnerable communities (transcription services for the hearing impaired, health aides, etc).
  • Triggered layoffs and closures because businesses could not afford the higher costs. Reclassifying independent workers as employees will raise labor costs for businesses by an estimated 20-30% and cost an estimated $57 billion nationwide

Reclassification takes away worker choice and will lead to lost incomes, closed businesses, and destroyed livelihoods. At a time of high inflation, policymakers should not destroy flexible work in America. Misguided policies to reclassify millions of independent contractors must be rejected.

IWN Staff
Back to Resource Center

More from IWN Staff

Share This For Wyoming Sorority, the Word ‘Woman’ is Up for Debate

IWN is continuing our fight to keep sororities female.

IWN Staff September 27, 2023
Read This What to Know: Parental Rights in Education

The education of public school students has become a contentious battleground, with…

IWN Staff September 27, 2023
Resource Center Merit v. Equity in Public Education

IWN has a fantastic new resource available for you in our Backgrounders…

IWN Staff September 21, 2023
Share This The Women’s Bill of Rights: What You Should Know

The discussion around women's rights has become increasingly challenging due to conflicting…

IWN Staff September 19, 2023
Read This The Importance of Education Freedom

Education freedom focuses on empowering students and parents rather than systems.

IWN Staff September 13, 2023

Related Posts by IWN

How to Write a Letter to the Editor (LTE)

It's the perfect time for placing a Letter to the Editor in…

IWN Staff August 16, 2023
Template Letter: Refusal to Sign Code of Conduct Email

This email is to inform you that we will not be signing…

IWN Staff August 11, 2023
In 60 Seconds: AB5

*PDF Download: In 60 Seconds – AB5 Today, 1 in 5 jobs in…

IWN Staff June 2, 2023
In 60 Seconds: Price Transparency

*PDF Download: In 60 Seconds – Price Transparency Healthcare price transparency is…

IWN Staff June 2, 2023
In 60 Seconds: Earned Leave For New Parents

*PDF Download: In 60 Seconds – Earned Leave for New Parents We…

IWN Staff June 2, 2023