July 26, 2023
Washington, DC — Today, Representative Adam Schiff (D-Calif.) led a letter to Acting Labor Secretary Julie Su urging her to investigate recent reports that Deel, a human resources technology startup, is misclassifying employees as independent contractors on purpose to increase their profitability and growth – at the expense of workers’ pay, benefits, and their right to organize.
The letter was also signed by Representatives Bill Pascrell (D-N.J.), Raúl Grijalva (D-Ariz.), André Carson (D-Ind.), John Garamendi (D-Calif.), and Haley Stevens (D-Mich.).
A recent investigation by Insider found that Deel often makes no distinction between its employees and independent contractors. The company reportedly classifies half of its own workforce as independent contractors, including the CEO, and advises its clients on employee classification.
“…Misclassifying independent contractors and employees goes beyond just the legal implications, with far greater economic and social consequences,” the lawmakers wrote.
“If it is likely that Deel is unable to abide by employee classification laws themselves, and they are in the business of helping their clients classify their employees, how sound can their advice be, and what is the broader systemic and economic impact as a result? By failing to fulfill their obligations towards independent contractors, businesses like Deel indirectly shift their responsibility for mitigating the ill effects of their actions onto broader...
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