Congress must block new labor rule that threatens entrepreneurship, innovation

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The Department of Labor has enacted a new rule that will make life incredibly difficult for independent contractors like me. But Congress has the chance to stop it. 

As a freelance writer, editor, and ghostwriter based in the Greater Phoenix area for more than 30 years, I’ve witnessed various shifts in the economic landscape, but none as threatening as this new rule from the DOL. Under the oversight of Acting Secretary of Labor Julie Su, millions of independent contractors across the U.S. could be misclassified against their will as W-2 employees.

Sen. Bill Cassidy, R-La, and Rep. Kevin Kiley, R-Calif., have introduced a joint resolution to block this overreaching rule. Their effort, leveraging the Congressional Review Act, represents a critical check on agency power and offers a beacon of hope for reversing this counterproductive, anti-business policy. 

The rule’s potential repercussions are grim. A study by the Chamber of Progress predicts that over 3.4 million independent contractors will face direct income losses totaling upwards of $30 billion. In Arizona, where freelance work grew by 255 percent from 2010 to 2020, this shift could devastate over 500,000 solo businesses. The potential reclassification threatens not just individual livelihoods but also the vitality of small businesses throughout the state.

By muddying the definition of independent contracting, the new rule adds complexity and uncertainty rather than clarity, both for us as freelancers as well as for our clients. Freelancing has always been about mutual benefit and flexibility. Businesses gain from our specialized skills without the overhead of a full-time employee, and we enjoy the freedom to choose our projects and manage our schedules. It’s a simple system: if the partnership doesn’t work out, we part ways. This new rule, however, is set to dismantle this dynamic by pushing a more rigid employment model that many of us chose to avoid.

The proponents of this rule argue it’s for our protection, claiming it will provide stability and benefits. But whose stability are we talking about? The government’s, which anticipates a steadier stream of tax revenue? Or a union’s, many of which would love a boost in dues through more organized employees?

Julie Su and her union leader allies presume to dictate what’s best for us, without understanding or acknowledging the nuances of self-employment.

This isn’t protection—it’s restriction. The rule curtails our ability to operate freely and set our own professional course. By pushing this one-size-fits-all approach, the DOL is not safeguarding anyone; it’s attempting to corral independent contractors into a system that many deliberately chose to reject.

Without congressional intervention, we risk a repeat of California’s AB 5 debacle, which led to significant income losses and forced many freelancers to relocate or quit. The people of Arizona don’t want to see our state become California. An overwhelming 82 percent of Arizona voters support the right of independent contractors to choose their employment status. Even the DOL’s own data indicates that 79 percent of independent contractors prefer their flexible arrangements to traditional roles.

Freelancers like me are small business owners and entrepreneurs who contribute to the economy and culture of innovation. We need policies that support our independence, not bureaucratic meddling under the guise of protection.

Jake Poinier founded Boomvang Creative Group, a Phoenix-based editorial services firm, in 1999.