Every American deserves the freedom to create the work and business relationships that fit their needs. That’s why the Goldwater Institute is backing two proposals by the U.S. Department of Labor to bring clarity and uniformity to how federal agencies treat various forms of non-traditional employment.
For years, federal agencies and courts have struggled over how to classify workers and business relationships under federal labor law. The question affects whether Americans can work independently, start small businesses, operate franchises, hire contractors, and build careers outside the traditional employment model. Independent contracting, franchising, staffing, subcontracting, and related work arrangements are essential parts of the modern economy. Federal rules should protect those arrangements from vague or restrictive standards that create uncertainty and limit opportunity.
The Department of Labor now seeks to restore clarity in two important areas: independent contractor classification and joint employment.
In April, the Goldwater Institute submitted a comment supporting a proposed Labor Department rule regarding how independent contractors are classified under several federal laws.
The Biden administration created uncertainty by expanding the circumstances under which independent workers could be treated as traditional employees. That uncertainty has real consequences. Workers and businesses cannot confidently sign contracts, hire...
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