Published on January 25, 2024, 2:15 am

In a decisive move at the California Capitol on Tuesday, Assembly Republicans joined forces with Congressman Kevin Kiley to challenge the Department of Labor’s imminent Independent Contractor Rule. This proposed regulation threatens to replicate nationwide the detrimental effects suffered in California through AB5 by severely undermining the independent contractor model.

Voicing a united outcry against this potentially harmful rule were prominent Republican figures including Assembly Republican Leader James Gallagher and Assemblywoman Kate Sanchez (R-Mission Viejo). Coordinated efforts between legislators and business leaders, represented by Tom Manzo from the California Business & Industrial Alliance and Matthew Estipona of the Associated Builders and Contractors, are set to intensify in their defense of independent contractors.

Sanchez is primed to introduce legislation seeking to repeal state restrictions imposed on contractors by AB5 while her colleague Rep. Kiley will challenge federal attempts to limit independent contracting. The alignment displayed at these conferences emphasizes their commitment towards promoting entrepreneurship and protecting job opportunities.

The staunch opposition stems from California’s firsthand experience with AB5, which left serious negative impact that caused many Californians their jobs. The forthcoming rule mirrors key aspects of AB5’s ABC Test, which if enforced nationally could result in similarly disastrous effects for America.

Grim predictions abound should implementation proceed without intervention; Congressman Kiley cites analysis by Chamber of Progress suggesting an expected loss of direct income for approximately 3.4 million American workers accompanied by a more than $31 billion hit in lost income affecting most vulnerable communities across the country.

Strategies announced include application of Congressional Review Act when Department of Labor offers this new rule for Congress’s consideration – utilizing it would put the law under review granting chances for possible rescission. Concurrently, two major legal fronts challenging Independent Contractor Rule have been initiated: one led by Financial Services Institute emphasizing procedural inaccuracies and another seeped in constitutional grounds undertaken by journalists’ group Fight for Freelancers.

Assemblyman James Gallagher has expressed his fears about policies responsible for job loss, rising living costs due to inflation and the struggles Californians face. Such bleak outcomes fuel their endeavours and focus efforts into expanding horizons for everyday Californians burdened by heavy regulations.

In conclusion, the collaboration of Republican lawmakers, business leaders and independent contractors we are witnessing attest to what united action against harmful policies can achieve – providing an exemplar for Republican counterparts nationwide to follow suit in their own territories.

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