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Source: Congress.gov
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I know. Yeah, I like that. Well, because, like, when I bought my phone not that long ago, there was, like, an iPhone, like, 8 or something like that that I had for, like, probably a decade. Yeah, and then I got, like, an FB or something like that that still has a button. But not a fan of that. Yeah. And so I'm like in there trying to work, and then God sends me a harder trigger, and I'm like... And then the doctor's laughing at me, and I'm just like, bruh. Yeah, we need to get work. Hey, how are you? I'm good. Good to see you. Good to see you as well. Yeah. Do you know either?
I'm just an aviation fan. Oh, hi. And they're all using. Oh, I'm sorry. I just said I knew. It's okay. I was using my flight, but now I'm using mine. Hi, we can hear that. So, why don't I call you to the double fan? Hopefully, that was a good one, but it's not being done yet. It's got to be a good one. Okay. Good, good. Yeah. Yeah. Yeah.
This subcommittee on workforce protections will come to order and that I will note a quorum is present. Without objection, the chair is authorized to call a recess at any point. The way people are doing work in America is changing. New platforms, technologies, and business models have transformed the way people earn a living, giving millions of workers more flexibility, autonomy, and opportunity. Whether it's freelance writers, apps-based drivers, or self-employed consultants, these arrangements are helping people find work that fits their lifestyle and goals. In many cases, this flexibility leads to higher job satisfaction and better work-life balance. Unfortunately, outdated policies haven't kept pace with these changes. Too many independent workers today face legal uncertainty and unnecessary restrictions that limit their ability to work on their terms. Today we will examine the challenges faced by freelancers, self-employed individuals, and other workers who choose to operate as independent contractors. These challenges include worker misclassification under the Fair Labor Standards Act and the fact that many independent contractors would like to have access to benefits W-2 employees typically enjoy while still taking advantage of the flexible working arrangements of an independent contractor. We've seen the damaging repercussions of restrictive state laws that prevent workers from operating as independent contractors and force them to be reclassified as traditional employees. This is especially visible after California enacted Assembly Bill 5 in 2019, which reclassified many independent contractors as employees. Due to the overwhelming negative impact, the California legislature had to exempt more than 100 professions and industries from the law. Unfortunately, states have followed California's lead with their own onerous requirements, oftentimes with disastrous results.
Despite California's terrible outcomes, the Biden-Harris administration attempted to nationalize AB5, depriving an estimated 72.7 million independent workers of clarity and consistency in the law. The 2024 independent contractor rule imposed a confusing and complicated six-factor economic realities test to determine worker classification. These factors range from the worker's skill and initiative to his or her integral role that they play in the company's success and the degree of permanence of the relationship, among other factors, which may even include unnamed factors. This would have dramatically and drastically increased the federal government's control over the American workforce. Not only is this policy bad for independent contractors, but it is also bad for the American economy.
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