Resources Issue: Economy

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.

PDF: Letter to Personal Investment Advisor

Dear PERSONAL INVESTMENT ADVISOR, 

I appreciate the care and advice you’ve given me over the years to achieve my financial goals. 

I’m writing because I’m concerned about investment banks and funds no longer prioritizing maximizing shareholder value and returns for people like me, and am hoping that you can tell me how you are navigating these issues. 

To be clear: I view the investment strategy based on Environmental, Social, and Governance principles, or ESG, as a betrayal of that fiduciary trust. It puts the interests of other parties ahead of my interests and undermines my ability to achieve financial goals. I do not share the political values that underpin the ESG movement – but that shouldn’t matter.  Investing shouldn’t be politicized.  Nor should I have to worry about my savings being used to advance a political agenda rather than to help me build my nest egg. 

I would appreciate learning how ESG and other political agendas are impacting decisions relating to my account and how you are trying to help safeguard my assets from being invested in non-politicized funds. 

Thank you. 

Sincerely,

PDF: Letter to Financial Institutions About ESG

Dear INVESTMENT BANK, 

Investors like me, as well as retirees and pensioners, have typically trusted your investment firm to prioritize maximizing the value of our savings and investments.

The trend of investing based on Environmental, Social, and Governance principles, orESG, is a betrayal of that fiduciary trust and one that incurs serious financial consequences. It puts the interests of other parties ahead of the interests of shareholders and investors like me. This is undermining the security of my retirement and my ability to achieve other financial goals. 

There is simply no reason for [Name of Investment Firm] to prioritize the wants of left-leaning activists over producing a sound financial return for investors.

I know that ESG investments are not as profitable as advertised. There are many other avenues for [Name of Investment Firm] and its employees to engage in the political process without sacrificing my financial security. Please understand:this is especially concerning as many Americans experience financial hardship stemming from rapid inflation and financial instability. 

I implore you to refrain from engaging with businesses that prioritize ESG investments and rating systems over maximizing shareholder value. There are other financial institutions that I can entrust  my investments with because they are keeping controversial politics out of their financial decisions. If you insist on using your company to make political points and push woke ideology, I’m going to take my business and investments elsewhere.

Sincerely,