Chairman Scott, Rep. Adams Praise Biden Administration for Protecting Workers from Wage Theft
Labor Department withdrawal of Trump-era Independent Contractor rule will save workers billions in lost wages every year
WASHINGTON – Chairman Robert C. “Bobby” Scott (VA-03) and Workforce Protections Subcommittee Chairwoman Alma Adams (NC-12) released the following statement after the Department of Labor announced it is withdrawing a Trump-era rule narrowing the Department’s interpretation of employee status under the Fair Labor Standards Act (FLSA). The Trump rule would have made it easier for companies to misclassify their employees as independent contractors, depriving their workers of minimum wage and overtime protections under the FLSA.
“The Trump administration’s independent contractor rule would have undermined the basic minimum wage and overtime protections that workers have relied upon for more than 80 years. By withdrawing this rule, President Biden and Secretary Walsh are standing up for the fundamental principle that our nation’s workers should be paid fairly for their work.
“The trend of employers misclassifying their employees as independent contractors is making it more for hardworking people to provide for themselves and their families. The Economic Policy Institute estimated that this rule would have cost workers more than $3 billion each year. Adding that additional burden on workers – who are already struggling to recover from the economic fallout of the pandemic – would have been disastrous. Today’s announcement is also good for businesses that follow the rules and are put at a disadvantage when their competitors are allowed to cut corners.
“We applaud the Biden administration for doing the right thing on behalf of workers, families, and law-abiding businesses.”
Last month, Chairman Scott, Rep. Adams, and more than 75 Democrats submitted a public comment letter opposing the Trump-era Independent Contractor Rule. Read the letter here.
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