AP Photo/Marcio Jose Sanchez

Kevin Kiley Asks Acting Labor Secy Julie Su to Suspend the Effective Date of the Indep. Contractor Rule

The United States Department of Labor final Independent Contractor Rule went into effect on Monday, negatively impacting 64 million independent professionals in the nation. Rep. Kevin Kiley (R-CA) sent a letter to Acting Secretary of Labor Julie Su requesting she press the pause button on implementing the rule.

Given the legal questions surrounding the final rule, I’m requesting that you stay the implementation of the final rule until the litigation can be resolved.

At least five lawsuits naming the Biden administration have been filed to see this rule stopped. RedState has reported on this extensively.

KILEY: The American Dream Is in Danger
A Lawsuit Seeks to Stop the National Destruction of Trucking Through the DOL Indep. Contractor Rule
Kevin Kiley Joins with CA Assembly Republicans to Fight the AB5-Inspired Independent Contractor Rule
California’s AB5 Goes National With the Independent Contractor Rule: Why You Need to Pay Attention

Just this week, the U.S. Chamber of Commerce joined with the Coalition for Workforce Innovation in their lawsuit challenging the rule.

Also related, a U.S. District Court judge slapped down the attempt by the National Labor Relations Board (part of the Department of Labor) to enforce a joint-employer rule, which also would have affected small businesses. This is a multi-pronged attack by the Biden administration to destroy America’s small businesses, which are the engines of our economy. Kiley concluded his letter by addressing the confusion this vague rule has already caused independent professionals and small businesses.

Our nation’s workers and businesses need stability and clear direction. A decision to plow ahead with the rule before the courts can finish their review exacerbates confusion and disruption. This uncertainty is the enemy of growth and prosperity. You can end all of that by simply pausing the rule until the Courts complete their work. I urge you to take this simple and prudent step to protect American jobs.

In addition to Kiley’s letter to Su seeking a pause on the IC Rule, 31 policy organizations have also banded together to seek redress from Congress against the rule. The Institute for the American Worker reported:

As a Congressional Review Act is being considered to rescind the Department of Labor’s (DOL) Independent Contractor rule which goes into effect today, 31 policy organizations sent a coalition letter to the U.S. Congress last week raising concerns with how the new rule would have a disastrous impact on entrepreneurs by improperly classifying many independent workers as employees against their will.

This coalition letter points out that in her role as acting Secretary, Su has embedded similar tests from California’s AB5 law into the rule. The coalition also notes that Su’s targeting of small businesses and entrepreneurs was instrumental in her failing to reach confirmation of her bid for Secretary of Labor. 

The letter reads, in part:

Acting Secretary Su’s support of California’s law restricting independent contracting undoubtedly played a significant role in Congress choosing to reject her nomination to become Secretary of Labor. Congress can now reject her attempt to foist this regulation with a similar intention to the American people.
In order to prevent the lost economic opportunity and flexibility American families enjoy from self-employment careers, the Congressional Review Act can stop the implementation of this very damaging rule.We hope that Congress will fight to protect independent contracting in America.

Here is a list of the groups opposing this end-run around the Constitution and this assault on individual liberties.

  • Advancing American Freedom 
  • Center for the American Worker, America First Policy Institute
  • American Society of Journalists and Authors Americans for Limited Government Foundation
  • Americans for Prosperity
  • Americans for Tax Reform
  • California Business and Industrial Alliance Save Independent Work Coalition
  • Center for Freedom and Prosperity
  • Colorado Policy Pathways 
  • Competitive Enterprise Institute
  • Cypress Language Services
  • Freedom Foundation
  • Freelancers Against AB5
  • Heritage Action For America
  • Hispanic Leadership Fund
  • Illinois Policy Institute
  • Independent Women’s Forum 
  • Institute for the American Worker
  • Institute for Liberty
  • Job Creators Network
  • Liberty Justice Center
  • Libre Initiative
  • Mackinac Center for Public Policy 
  • National Taxpayers Union
  • New Jobs America
  • Open Competition Center
  • Small Business & Entrepreneurship Council 
  • State Policy Network
  • Thomas Jefferson Institute for Public Policy 
  • Workplace Policy Institute

Along with this letter, on March 6, Rep. Kiley, along with Sen. Bill Cassidy (R-LA), introduced a joint Congressional Review Act (CRA) resolution Wednesday to overturn the rule.

You can contact your elected representatives and urge them to support the CRA resolution. Small business is the heart of our economy and this rule jeopardizes not just the freedom to work as we choose, but it blunts innovation and building, which is at the heart of American enterprise. 

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