Republicans Introduce Measure to Block Gig Worker Status Rule

Congressional Republicans are introducing legislation to block a US Department of Labor worker classification rule that would make it more difficult for companies to label workers as independent contractors.

Sen. Bill Cassidy (R-La.) and Rep. Kevin Kiley (R-Calif.) introduced a Congressional Review Act resolution Wednesday to overturn the DOL’s independent contractor rule, which is set to take effect March 11. Cassidy is the top Republican on the Senate Health, Education, Labor, and Pensions Committee, while Kiley heads the House Education and the Workforce Subcommittee on Workforce Protections.

The new standard will make it harder for companies to classify workers as independent contractors, who aren’t eligible to the same benefits and protections awarded to employees under federal wage and hour law. It’s been under fire by many in the business community, particularly app-based companies like Uber Technologies Inc. and Lyft Inc.

Republicans and business leaders say the regulation will deal a blow to the gig economy and restrict flexibility for workers who enjoy being in business for themselves. Several lawsuits have been filed against the rule alleging that the regulation is too broad and goes beyond the scope of the DOL’s authority.

“The Biden administration’s priority should not be to do whatever makes it easier to forcibly and coercively unionize workers. It should be to increase individual freedom and opportunity,” Cassidy said in a statement accompanying the resolution. “This new Biden rule does the opposite, jeopardizing 27 million workers’ ability to make their own hours and make a living without being pressured into joining a union.”

Meanwhile, the Biden administration and congressional Democrats have rejected the criticism, arguing that the rule is focused on combating the misclassification of workers.

The CRA allows Congress to overturn regulations through a resolution that can clear both chambers of Congress by a simple majority and be signed by the president. But so far President Joe Biden has vetoed all nine CRA resolutions that have cleared Congress during his tenure.

The latest resolution is part of a series of attempts by Republicans to block labor regulations. Congress rejected a DOL rule governing sustainable investing by retirement plans—but was vetoed by Biden—and the Senate is expected to vote soon on a CRA measure to block a National Labor Relations Board rule that sets a new standard for whether businesses are considered to be joint employers under federal labor law.