Congressman Drew Ferguson (GA-03) recently introduced H.R. 781, the Guaranteeing Independent Growth (GIG) Act, to codify the Trump-era Independent Contractor Rule. This legislation clarifies who is an independent contractor under the Fair Labor Standards Act by establishing a two “core” factor test: the nature and degree of the individual’s control over the work and the individual’s opportunity for profit or loss.

“With a third of Americans utilizing independent contracting work in the past twelve months, contracted labor has become vital across many industries,” said Congressman Drew Ferguson. “Instead of making it easier for Americans to enter the workforce, President Biden is unnecessarily complicating the standards for determining whether a worker is an employee or an independent contractor. Any complicated rule by the federal government will only hurt workers who want to remain independent and have flexibility. At a time of economic uncertainty, the GIG Act would ensure employers and workers alike have simplistic rules to follow while avoiding burdensome red tape and unnecessary costs.”

Original Cosponsors: Rep. Carol Miller (WV-01), Rep. Mike Garcia (CA-27), Rep. Harriett Hageman (WY-AL), Rep. Tom Cole (OK-04), Rep. Austin Scott (GA-08), Rep. Burgess Owens (UT-04) and Rep. Tom McClintock (CA-05).

Background:

On October 13, 2022, the Biden Administration’s Department of Labor published a Notice of Proposed Rulemaking to revise the Department’s guidance on how to determine who is an employee or independent contractor under the Fair Labor Standards Act. This new rule would replace the Trump-era Independent Contractor Rule and make it more difficult for workers to be classified as an independent contractor. If the Biden Administration’s rule is finalized, serious setbacks would be incurred for small businesses, app-based work, and individuals who enjoy work flexibility. The Biden rule would also increase business costs and give more power to unions to organize workers.

This legislation is supported by Heritage Action, National Federation of Independent Business, U.S. Chamber of Commerce, The Associated General Contractors of America, and the American Trucking Association.