The Biden administration recently released a devastating policy that dismantles the gig economy. It jeopardizes the ability of 27 million Americans to work as independent contractors. 

Independent contractors, or freelancers, make their own hours to fit their schedule and decide where and how they want to work. Incidentally, they are shielded from forced or coerced unionization that would strip that flexibility away. This has made eliminating freelancing a top priority for large labor unions who want more workers paying forced union dues.

The regulation attempts to achieve the goals of a policy California implemented called an “ABC test,” a burdensome process that makes it essentially impossible for businesses to prove their workers are independent contractors and not direct employees, even if the workers themselves do not want to be classified as employees. The Department of Labor has not estimated how many millions of individuals would be impacted by their new rule losing their livelihoods but the experience of independent contractors in California is illustrative of what can happen at the federal level. 

President Biden speaks about inflation and the economy in the South Court Auditorium on the White House campus, May 10, 2022. (Getty Images)

When California enacted an ABC test under AB 5, it had harmful effects on workers and businesses across industries.

Unfortunately, this rule does the opposite, and jeopardizes the livelihood of 27 million workers who want the flexibility to make their own hours and make a living without being pressured into joining a union.  

I urge my colleagues to support the CRA to repeal this harmful policy and support all workers, including those who do not want to be unionized and desire the freedom of being independent contractors.

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Bill Cassidy, a physician, was elected to the U.S. Senate as a Republican representing Louisiana in 2014 and earlier served for six years in the U.S. House.