Lori Chavez-DeRemer, President Donald Trump's pick to be Labor secretary, said Wednesday that she'd work to help lawmakers craft legislation to provide independent contractors with more affordable health and retirement benefits If confirmed by the Senate.
During a confirmation hearing held Wednesday by the Senate Health, Education, Labor and Pensions, or HELP, Committee, Chavez-DeRemer was asked by its chairman, Bill Cassidy, R-La., if she'd work with the senators "on legislation to make sure that the independent worker and the small business are able to get the affordable benefits available to ordinary employees at larger companies."
Chavez-DeRemer responded that she'd "commit wholeheartedly on this issue."
President Donald Trump said in November that he would nominate Chavez-DeRemer, a Republican with an unusually pro-union record.
As a congresswoman from Oregon, Chavez-DeRemer was one of the few Republicans to co-sponsor sweeping pro-union bills including the PRO Act, which significantly narrows the definition of "independent contractor" under the National Labor Relations Act, potentially reclassifying many independent contractors as employees.
Cassidy noted during the hearing that approximately 27 million workers are independent contractors.
"The PRO Act tried to impose a one-size-fits all rule which, as was done in California, disrupted livelihoods instead of helping workers," Cassidy said. He asked Chavez-DeRemer if she'd "commit to refrain from implementing any rules stripping independent contractors of the flexibility they need to provide for their families, and to simultaneously contribute to the American economy.”
Chavez-DeRemer responded: “Certainly will commit to understanding this," adding that Trump during his first administration set out parameters of who is an independent contractor and who is an employee.
"I commit to working with you in supporting independent contractors in this process … that bill [the Pro Act] wasn’t perfect and these were the conversations that needed to be happening," Chavez-DeRemer said. "Supporting that independent contractor is key to growing this economy."
DOL Independent Contractor Rule
The Labor Department released in January 2024 a final rule that defines whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The Financial Services Institute warned that the rule, which it tried to strike down in court, could threaten advisors' status as independent contractors.
In laying out its policy priorities for 2025, FSI said that the group was "dedicated to preserving advisors’ choice to be independent contractors and support solutions that offer our members clarity so that they can operate confidently and not waste significant resources defending their worker classification decisions."
The Independent Contractor rule case "is currently fully briefed and awaiting a ruling in the Federal District Court in Texas," David Bellaire, FSI's general counsel, told ThinkAdvisor Wednesday. "However, with the change in administration, both this case and related litigation are expected to be paused to allow the new leadership at the Department of Labor to assess and decide how to proceed."
FSI, Bellaire added, "remains actively engaged in advocating for a favorable outcome for independent financial advisors. We continue to collaborate with coalition partners and litigation counsel to protect the independent contractor status, which is vital to the business model of independent financial professionals."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.