We should consider the meaning and implications behind it.
Hi Friend,
On Labor Day, women can celebrate the ever-growing number of unique opportunities for flexible work. Personal chefs, resume writers, furniture builders, golf instructors, dog sitters, and musicians are only a few clicks away from their next gig and they don’t have to be in a traditional 9-to-5 job to do so. Studies have shown that more women than men indicate that job and location flexibility is very important in a job.

America’s freelance workforce has grown to more than 65 million and counting. Over half of people who freelance—​​as their full-time occupation, side hustle, or part-time job––are women.
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Independent contractors understand there is a tradeoff with this arrangement. Instead of a guaranteed salary and benefits, they receive the flexibility to determine their schedule and the autonomy to decide whom to work for, what work they do, and how they get it done. Women would give up more than 7% of their salaries for flexibility (as opposed to men, who would give up about 1%).

Freelancers are free by choice. Nearly 75% of freelancers are working independently by choice. Nearly two out of three women working in the gig economy (61%) would prefer to be independent while only 12% said they would want to be an employee of the company for which they gig.

Unfortunately, this freedom is under threat. Pending federal regulations could upend independent contracting. In 2022, the Biden Department of Labor proposed a regulation making it unnecessarily difficult to maintain independent contractor status under the Fair Labor Standards Act (FLSA). The result will be less opportunity, less flexibility, and less financial security ([link removed]) for millions of workers. The rule would raise labor costs for businesses by $18-61 billion each week.

Alarmingly, this regulation will be finalized any day now nationwide.
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We know that these regulations cause MORE HARM than good. When California imposed greater restrictions on independent contractors in 2020 through Assembly Bill 5 (AB5), thousands of people across hundreds of occupations lost their contracts, incomes, and livelihoods.

Women and men have a right to pursue their chosen paths. Restricting independent contracting robs workers of their economic freedom.

Have you been affected by the regulations being imposed on independent contractors and freelancers?
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Sincerely,
Patrice Onwuka
Director of the Center for Economic Freedom
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