|
Op-Ed:
Department of Labor nominee David Weil would harm workers, small
businesses
[The Center Square] Ross Marchand |
Taxpayers Protection Alliance
As the economy slowly but
surely recovers from the coronavirus pandemic, businesses are desperate
to hire back workers who were told to go home during the height of
lockdown restrictions. In a remarkable turnaround, there has already
been a flurry of wage hikes, increases in signing bonuses, and contract
renewals offered by companies reopening their doors. But all of this may
change if the Biden administration picks the wrong personnel to staff
operations at federal agencies such as the Department of Labor (DOL).
For example, President Biden recently nominated Brandeis professor David
Weil to head the DOL’s Wage & Hour Division, despite Weil’s longstanding
advocacy for harmful regulations. The Biden administration can usher in
a new decade of job growth and prosperity, but only with the right
people on the job. Lawmakers must reject Weil’s nomination in favor of a
leader who will stand with workers and businesses. |
|
 An administration is only as good as the people tasked with
overseeing key agencies and dealing with the nitty-gritty of governance.
Successive administrations have gotten into plenty of trouble in previous years
due to the bizarre theories flouted by staff and advisors such as Peter “Ron
Vara” Navarro and farm subsidy lover Tom Vilsack. Confirming David Weil would
continue this trend of giving the backers of bizarre beliefs far too much power.
Dr. Weil is known for sounding the alarm about an increasingly “fissured
workplace,” the idea that corporations are getting ahead through contracting,
outsourcing, and franchising to the detriment of workers. One only need ask the
millions of Americans who choose the flexibility of being an independent
contractor if Weil’s academic theory justifies an upending of their livelihoods.
Survey data from Lyft and Uber drivers indicates that the vast majority prefer
to remain independent contractors, citing the flexibility and freedom that comes
with being your own boss.
And while it may be hard to get rich off of ridesharing, hourly earnings eclipse
entry-level earnings at many stores and restaurants without rigid hours or the
requirement to be on your feet all the time. But worker satisfaction is not
enough for Dr. Weil, who would likely seek to narrow the definition of
“independent contractor” to force millions to accept a status they do not want
or need. During his first go-around at the DOL, Weil opted to define
“independent contractor” to exclude the vast majority of workers despite their
preferences or industry realities. Dr. Weil and the Obama administration ignored
decades of legal precedent and concluded that, “most workers are employees under
the FLSA’s broad definitions.”
Another concern is that Weil will
wield his power to target the franchise industry, which employs over 7 million
workers, including in the states of key Democratic Senators like West Virginia
(45,000), Arizona (153,000), and Montana (30,000). Weil has expressed open
hostility to these small businesses both in his writings and action he took in
2016 that has greatly increased litigation by expanding the definition of a
“joint employer.”
[ to
top of second column] |
As the Senate considers Weil’s nomination, the
Biden administration is actively pushing a harmful piece of
legislation called the Protecting the Right to Organize (PRO) Act.
This proposal would reclassify millions of independent contractors
as workers (without their consent) under a rigid test that makes
little sense. Under the PRO Act, a contractor would be considered an
employee unless the service they are performing is “outside the
usual course of the business of the employer.” But as the Authors
Guild explains, “a journalist writing for a newspaper, magazine,
blog, etc. is generally performing a service that is core to the
‘usual course of business of the employer.’” As a result, countless
freelancers would be reclassified as employees and become too costly
for newspapers and media companies to continue to work with.
According to the American Action Forum, the PRO Act would add
billions of dollars in annual compliance costs on employers and harm
millions of small businesses.
The very real fear is that, even if the PRO Act fails to become law,
a DOL enforcement wing run by Dr. Weil and likeminded ideological
appointees could issue interpretations, regulations, and undertake
arbitrary enforcement strategies designed to mimic the worst parts
of this disastrous proposal, especially with regard to worker
classification and the joint employer standard. Unless Weil provides
ironclad assurances during his upcoming hearing in the Senate
Health, Education, Labor, and Pensions (HELP) Committee that he will
not target small businesses and contractors, Senate Republicans
should view this nomination as a proxy vote on the PRO Act and
reject his nomination. The lives and livelihoods of millions of
workers and businesses hang in the balance.
Ross Marchand is a senior fellow for the Taxpayers
Protection Alliance.
Click here to respond to the editor about this article
 |
