The concept of working as an independent contractor has been around for centuries. In recent years, new technology has given millions of Americans the opportunity to earn money, work flexible hours and be their own boss through independent contracting. Military spouses, transitioning service members, stay at home parents, and people just looking to earn a few extra dollars have all benefited from this type of work—not to mention the millions of consumers who are able to purchase all manner of services right from their phone.
More traditional businesses like insurance, transportation, logistics, technology, and journalism also use the independent contractor model to one degree or another. The fact is that the “traditional” employment model, where your employer tells you where, when, and how to work just doesn’t fit every worker, or every business.
Unfortunately, some states are looking to pass new restrictions on independent contracting. Through laws like AB-5 in California, legislators are threatening to close off the opportunities offered by independent contracting, and smother new business models that benefit workers and consumers.
In addition, the U.S. Department of Labor has proposed a new regulation that defines whether a worker is to be classified as an employee or an independent contractor under the Fair Labor Standards Act. This proposed regulation would replace the current regulation issued by the Trump administration that provided a balanced approach to making this determination. The proposed regulation is heavily weighted towards classifying a worker as an employee instead of an independent contractor. The U.S. Chamber of Commerce is leading the employer community in opposing this proposed regulation.
The U.S. Chamber of Commerce is committed to protecting the opportunities offered by flexible employment models. Lean more about our work on this issue below.