Scott, Omar Slam DOL Rule Robbing Workers of Fair Wages and Workplace Protections

WASHINGTON – Today, House Education and Workforce Committee Ranking Member Robert C. “Bobby” Scott (VA-03) and Subcommittee on Workforce Protections Ranking Member Ilhan Omar (MN-05) slammed the Department of Labor’s (DOL) proposed rule to allow unscrupulous employers to misclassify their workers as independent contractors, robbing workers of their wage and hour and other work protections.

The Members argued that by loosening restrictions allowing employers to misclassify their employees as independent contractors, the proposed rule will strip workers of their basic wage and hour protections and leave law-abiding businesses at a competitive disadvantage. Unlike employees, independent contractors do not get essential protections, such as minimum wage, overtime, unemployment compensation, workers' compensation, access to employee healthcare and benefits, pensions, or OSHA protections.

“Despite the proposed rule’s claims to the contrary, the Department’s proposal conflicts with the statutory text and Congressional intent, as well as controlling law,” wrote the Members. “As a result, the proposed changes in this rule would result in more regulatory confusion among stakeholders and provide more opportunities for lawbreaking employers to evade liability for robbing workers of their wage and other basic federal protections.”

“Despite the proposal’s claims, the reality is that Department’s proposal would lead to more widespread misclassification and more exploitation of workers,” the Members continued.

In the letter, the Members also asserted that the proposed rule would have a detrimental effect on the economy by giving an unfair advantage to employers who misclassify their workers. Rampant misclassification could also impose significant financial burden on federal, state, and local governments due to lost tax revenues.

The Members demanded that DOL withdraw its proposed rule to safeguard workers’ wages and protections.

To read the full letter, click here.

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