October 25, 2022 — Modern Economy Project
The U.S. Labor Department recently proposed a rule that would enact new standards for determining whether workers qualify as independent contractors or employees.
This proposal would mark major changes for employers across the global economy, particularly for small businesses.
Such an overhaul deserves sufficient time for employers to identify its impact on their operations –and for the Administration to receive critical input on its true implications for the modern economy.
Members of the Modern Economy Project recently wrote to Amy DeBisschop, director of the Division of Regulations, Legislation, and Interpretation in the Wage and Hour Division at the Labor Department, asking that the comment period for this proposed rule be extended for 90 days.
The Labor Department has now extended the comment period for another two weeks. But this is simply not enough time.
A longer extension will allow more time for deliberation and input on how this proposed rule would impact the ability of individuals to work independently through a contractor arrangement.
Our members include advocates for women and Black-owned businesses, as well as entities that represent small businesses and entrepreneurs.
In addition, the Modern Economy Project is conducting research on the impact employers large and small can have on localities when they enter the market. We believe this research will be beneficial to the Labor Department as it considers its proposal.
Allowing for robust public comment will better prepare the Labor Department with such context and feedback.
More time to deliberate this proposed rule will allow the Labor Department and key stakeholders to more thoughtfully consider how to proceed with changes to the way independent contractors participate in our modern economy.