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Biden’s Latest Disaster for Small Businesses, Independent Contractors

Posted on Thursday, January 11, 2024
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by AMAC Newsline
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86 Comments

AMAC Exclusive – By Shane Harris

Bright Futures Learning Services CEO Jill Scarbro delivers remarks and introduces President Joe Biden at a Rose Garden event celebrating National Small Business Week, Monday, May 1, 2023, at the White House
Under the guise of helping “gig workers” at companies like Uber and DoorDash, the Biden administration just finalized a new Labor Department rule modeled after a California law that will likely be a death sentence for many small businesses and make it significantly more difficult for independent contractors to earn a living. The rule, which was finalized on January 9 and goes into effect on March 11, will force companies to classify more workers as employees rather than independent contractors. A 2022 study from McKinsey & Co. found that 36 percent of employed Americans identify as independent workers – a cohort of roughly 58 million people. According to some studies, full-time employees cost companies as much as 30 percent more than independent contractors due to labor laws requiring that employers pay for certain benefits like healthcare and retirement. But independent contractor arrangements allow many Americans to take second and third jobs with more flexibility and freedom not afforded to traditional employees. Along with drivers for services like Uber, Lyft, and DoorDash, there are also many lawyers, traveling nurses, and construction workers who operate as independent contractors. While it’s currently unclear exactly how many of these individuals the new Labor Department rule will cover, industries from healthcare to shipping companies are bracing for major disruptions. According to a Wall Street Journal report, “Under the new rule, if a worker can be counted as a contractor would depend on factors such as whether the job is primarily permanent or temporary, how much control an employer has over work performance or how integral a worker’s job is to the overall business.” In a prepared statement, U.S. Chamber of Commerce Vice President of Workplace Policy Marc Freedman said that the new rule “is clearly biased towards declaring most independent contractors as employees” and would “decrease flexibility and opportunity and result in lost earning opportunities for millions of Americans.” The Society for Human Resources Management also said that the Labor Department’s rule “would create uncertainty and confusion for employers” and “would undercut workers’ ability to work independently.” While Uber, Lyft, and DoorDash executives have explicitly stated that they don’t believe the new rule will force them to re-classify their drivers as employees, those same companies also fought hard against the rule after it was first introduced in October 2022. A court battle will likely determine whether or not app-based service drivers fall under the rule’s six new criteria for determining whether someone should be considered an employee or independent contractor. The new rule appears to be modeled after California AB 5, which Governor Gavin Newsom signed into law in 2019. In a lengthy post on X, Republican Congressman Kevin Kiley warned that AB 5 “rendered countless independent professionals unable to earn a living in our state.” “Writers, interpreters, court reporters, musicians, language pathologists, photographers, forensic nurses, and people in literally hundreds of other industries were told they were no longer allowed to practice their profession and serve their clients as they’d been doing their whole careers,” Kiley continued. “Turning AB 5 into national policy, as Biden is set to do, will multiply these losses.” As Kiley also noted, “Seventy-nine percent of independent contractors prefer their current worker status,” while “only 10 percent say they’d prefer a traditional job.” As has been the case with dramatic minimum wage hikes in blue states, Biden’s new rule will likely result in businesses raising prices for consumers while laying off staff. Many small businesses who rely on part-time work from independent contractors will be forced to close up shop entirely. This development marks the latest effort by the Biden administration to undo a series of decisions by former President Donald Trump to give workers more freedom to determine their own work arrangements. Another Biden Labor Department rule in 2021 reversed a Trump-era rule simplifying the process for businesses to hire independent contractors. Although Rep. Kiley has promised to introduce a bill reversing the new rule, it will likely be difficult for any such legislation to pass the Democrat-controlled Senate. The best chance for independent contractors and businesses to reverse the decision is for a change in leadership in the White House this November. Independent contractors make a willing choice to give up certain benefits associated with being a full employee in exchange for freedom and flexibility that many use to achieve greater financial security, help ailing family members, or put children through college. Now, Biden is denying them and the companies they work for that option. Shane Harris is a writer and political consultant from Southwest Ohio. You can follow him on Twitter @ShaneHarris513.

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Vince
Vince
1 month ago

Once again leave it to democrats to get their hands into the people’s business when they have no right to interfere. This evil power hungry party needs to be kicked to the curb and not soon enough…

Ronald
Ronald
1 month ago

Name me ONE thing china joe has done that was GOOD for us?? EVERTTHING he touches is to hurt us. He calls President Trump a dictator?? He and his whole crime family with his administration should be in jail.

Jimmy P
Jimmy P
1 month ago

Leave it to the Democrats to “fix” something that is not broken. But, then again, they are good at making sure the “fix is in”. Creeps.

Stephen Russell
Stephen Russell
1 month ago

Bidens been Anti small business day 1 & anti Conservative business

PFArizona
PFArizona
1 month ago

And yet another reason to get out the vote and vote for Republicans, the reasonable party that believes in freedom!

GMA
GMA
1 month ago

Government take over..and democrat voters are not smart enough to realize what this means..Communism

Gabe Hanzeli kent wa
Gabe Hanzeli kent wa
1 month ago

once again all we get out of the Democrats is lies and deceit. when are people goign to grow up and figure out there are no good democrats. Even Kennedy was a pervert. Johnson investing in military contractors then expanded the war. Carter- enough said.

There have never been good democrats just good democrat liars.

Some Guy in Texas
Some Guy in Texas
1 month ago

Democrats won’t be happy until everyone is under the government’s control. Hurry up, November; we need to clear the bunch of them out.

Richard
Richard
1 month ago

They want people to take McDonald’s/Walmart jobs paying $18 per hour instead. This is why we must vote for Trump. We must rid our country of these Marxist criminals and globalists.

Veteran
Veteran
1 month ago

Instead of letting government regulate small business the people should pressure their so called “representatives” to regulate, defund, roll back, streamline, and oversee government! Instead of passing gas and useless legislation, Congress should realize that anything that shrinks the federal government helps. Come to think of it in some cases the heads of government departments should be made to see a shrink because they have become positively psychopathic.

Melinda
Melinda
1 month ago

Many people like working for themselves. As long as they pay taxes, what’s the problem? Oh, maybe the fact that government doesn’t trust us any more then we trust them! They nickle and dime us into poverty. Another instance of a beneficial Trump rule that Biden is reversing. I hope this loses him lots of votes, but with the dems cheating, it may not matter.

Robert Zuccaro
Robert Zuccaro
1 month ago

Can’t force an independent contractor to join a union. And without union payola, where would Democrats get their power and money?

Danm
Danm
1 month ago

Another giant step backwards!! As usual for this country destroying administration!

Thinking
Thinking
1 month ago

Another tyrannical order. All those unemployed when this goes into effect can go to work for sloppy Joe. Raising the deficit and bringing America closer to bankruptcy. Destroying America from within. Any and Everything is regulated by ole Joe. Pretty soon we need a permit to breathe, we are after all the biggest polluters. Not the elites private jets, or sloppy Joe flying to Delaware every couple of days, that is good for the environment. Let’s not forget traveling to Valley Forge and Charleston just to give a divisive speech. All to destroy America.

Mark
Mark
1 month ago

Once again they listen and never learn anything that fall out of their mandates. Major socialist. Smile in your face and stick it to you after.

Jon
Jon
1 month ago

right Vince, here is big brother dictating how people make a living! What hell are they thinking? … Oh sorry … I know they don’t think! Bleeding heart liberals are not for the little guy! Miserable jerks! Ge the hell out of our affairs!

Carol
Carol
1 month ago

Leftist HATE freedom cuz with freedom, they can’t control those who are free! Every decision by these Leftist are intended to destroy freedom! So be careful who you vote for, not just for president but all the way down to your local officials too! Even HOA board members! VOTE OUT ANYONE WHO WANTS CONTROL OVER YOUR FREEDOM!

Rhonda
Rhonda
1 month ago

How much more damage can he do before his term runs out?

zoe frost
zoe frost
1 month ago

Another new fresh hell from the corrupt ant-America puppet traitors JoeBama…as the evil pieces of fetid garbage continue the deliberate, systematic (and rife with malice) destruction of our freedoms and opportunities Constitutional Republic. The evil America LAST scum commie/globalist/demoncrap TRAITORS hate the Constitution with a white hot passion…it stands in the way of them getting their totalitarian hell that will reign over us soon, if the traitors aren’t stopped. Hanging by a thread, we still are a Republic. Question is, can we keep it? If another D traitor is cheated into position of POTUS this November, nope.

Drue
Drue
1 month ago

Biden is doing. everything he can to screw small businesses and these people who have to work second and third jobs. That guy is a NUT!

usmc7
usmc7
1 month ago

Everything Biden touches turns to schiff.

anna hubert
anna hubert
1 month ago

I don’t think omnipotent omnipresent government has a problem with a contractor it’s independent that that is objectionable

sue
sue
1 month ago

Talk about “the blind leading the blind,” and even those who gladly follow without any forethought–is scary! Can’t believe how many people take things at face value and do not want to even expend any energy or effort to find and KNOW the truth. Guess it is easy when one thinks that it will not affect them personally. Thank goodness for the true backbone of America–those that labor honestly and faithfully and in good conscience. Thank God !

Dean Howerton
Dean Howerton
1 month ago

LET’S GO BRANDON!

zoe frost
zoe frost
1 month ago

A+ for JoeBama, for putting the destruction of our freedoms/opportunities Constitutional Republic the expletive traitors HATE, on hyper warp speed! It couldn’t have happened without the aiding and abetting of myriad traitors in high places…Senate, House, corrupt federal alphabet departments, corrupt judges, indoctrinators in our education system, MSM and their propaganda spewers, to name the biggest traitors.

Elaine
Elaine
1 month ago

Another example of TOO MUCH GOVERNMENT! Vote out the Democrats!

Jackie
Jackie
1 month ago

Leave it to Democrats to just continue their destruction of America with smiles on their faces!!!!

Phillip Nagle
Phillip Nagle
1 month ago

This is indicative of a much bigger problem, administrative law, “regulations” imposed by unelected administrative bodies that have the same authority as laws passed by Congress, has superseded Congressional law as the main authority in this nation. Congress must reestablish its role as the sole source of law in this nation.

Pat R
Pat R
1 month ago

Trump policies = freedom of choice & aiding small businesses. Biden (admin) policies = removing freedom of choice & decimating small businesses.
That about sums up Biden administration’s war on Trump’s accomplishments for we the people while in WH.

Brian
Brian
1 month ago

And they keep getting voted in. Sad. Very sad.

pete kennedy
pete kennedy
1 month ago

I hire college students and allow them the flexibility to choose the day or days and hours they are able to work based on their class schedules, meetings, seminars, vacations, etc.
This will greatly hurt their chances for employment. In fact, it will end my ability to offer employment to them.

cathy
cathy
1 month ago

The black market is thriving…..just saying!

Morbious
Morbious
1 month ago

The treason party hates independent contractors and all self employed people because there’s no withholding of taxes. They want their hands on your money before you even see it. They began this during the war and liked it so much theyve kept it all these yrs. Withholding trains taxpayers to see their wages as rightfully the governments…..people think they’re getting a bonus when they get a tax refund! If all taxpayers had to write a quarterly check as self employed people do there would be a revolution.

Randall L. Beatty
Randall L. Beatty
1 month ago

He and the others in the White House should keep there nose out of business and leave people alone. They think they know better all he and his party wants is control they know nothing he cannot run this country and that goes for his administration.

Kyle Buy you some guns,and learn how to shoot
Kyle Buy you some guns,and learn how to shoot
1 month ago

Joe ! ! ! Please just curl up aned die. Kyle L.

Phil
Phil
1 month ago

That is by design! They want large corporations rather than numerous small businesses, it’ easier to control and manipulte.

Allen
Allen
1 month ago

Sure fooled you

Dave
Dave
1 month ago

And the list continues of things Biden has done to destroy the American way of life. This imbecile belongs in prison. However, my understanding was that this was defeated in California, no?

JPop
JPop
1 month ago

The 9 most terrifying words you will ever hear: “Im from the government, I am here to help”

Carl
Carl
1 month ago

Are you actually kidding me? Why the heck is THIS not all over the news instead of the other garbage they are distracting us with? This SUCKS!

Glynn
Glynn
1 month ago

Another reason to put TRUMP back in the “people’s house “. !!!????????????????????????

Bill
Bill
1 month ago

Knowing it’s patterned after a California law that Governor Newsom signed, should be enough to tell anyone it’s a bad idea.

Jim Halloran
Jim Halloran
1 month ago

Biden is hellbent on doing as much damage to the USA as he can during the year he has left. Impeach him now!

Steven
Steven
1 month ago

Once again we see government intrusion into our personal business. Remember that these are the same gurus who shut down the country during the pandemic causing many small businesses to close for good. And now that they opened up the economy a bit they are taking credit for new job growth from people who lost their jobs during the pandemic. A friend of mine recently retired and is planning to work for Lyft to earn some extra income. He loves the fact that he can set his own schedule as an independent contractor. He doesn’t want a full time job. Same with college students who can only work a part time schedule and love the flexibility of being an independent contractor. The fact that this new law was modeled after California tells you all you need to know that is doesn’t benefit the business or the employee.

Harry
Harry
1 month ago

Biden and Obama don’t know sheit about running a business!!!

Diane
Diane
1 month ago

How about a licensed realtor we are independent contractor

Kurt
Kurt
1 month ago

They are out to destroy America!

Jeane
Jeane
1 month ago

Of course! Some independents are paid in cash and, unfortunately, are not expected to declare it on their taxes. As employees, the IRS will know every cent they earn and expect their “(un)fair” share. I have always paid in cash … even tipping my waitress.

John DePasquale
John DePasquale
1 month ago

Just the latest apparently innocuous act whereby Government intrudes into the marketplace and extends its power.

Denah
Denah
1 month ago

Democrats claim Republicans are “Big Business”, but the democrats are continually creating circumstances which make it hard for small business and contractors under the guise of “protecting workers rights.” I wish more people paid more attention to actions than words. I’m self employed and concerned about the way this could impact my working status and my ability to maintain my Solo-401k and my Self-directed IRA.

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