about California and their experience with AB 5 . Chairman Kiley called it California ’ s most significant failure and cited several prominent Democrats who have dubbed it just that . He then went on to say that President Biden campaigned on making AB 5 a national standard .
Chairman Kiley cited a letter from over 100 economists who attested to the substantial harm AB 5 has done to workers and the economy . Chairman Kiley even published a book with all AB 5 horror stories he has heard . He also cited a study from the US Chamber of Commerce that projects 3.2-3.8 million Independent Contractors who will lose their job under the rule from the Department of Labor . The study also states that 79 % of Independent Contractors ( ICs ) want to remain ICs .
Chairman Kiley sternly called into question Julie Su ’ s qualifications to effectively and fairly serve as the Labor Secretary . Chairman Kiley noted her role as the architect and chief enforcer of AB 5 in questioning her qualifications to serve . In response , some stakeholders within the labor community who support Su ’ s nomination are vocally downplaying her role in crafting AB 5 .
In her opening remarks , Ranking Member Representative Alma Adams ( D-NC ) talked about misclassifying workers as ICs . Without citing a specific source , she claimed that misclassified workers lose up to $ 16,000 in pay per year . She went on to say that companies that used misclassified ICs have an unfair advantage in bidding for work as they can submit lower bids . She also discussed the loss of revenue for Social Security , Unemployment Insurance , and income taxes from misclassification of workers .
Representative Adams called the proposed rule from DoL a “ responsible rule ” and stated that committee Democrats “ strongly support ” the rule .
The Senate Committee on Health , Education , Labor , and Pensions ( HELP ) on April 26 reported the nomination of Julie Su to be the next Secretary of Labor . The nomination was reported out on a straight party-line vote .
A number of business organizations have formed a coalition to oppose Julie Su ’ s nomination to be Secretary of Labor . The Group known as Stand Against Su is running advertisements in the states of those undecided Senators to try and influence their votes .
Senate Majority Leader Schumer still yet to schedule a vote on the Su confirmation for the full Senate . Senator Manchin ( D-WV ) has stated he will not support her nomination . Senators Tester ( D-MT ), Kelly ( D-AZ ), and Sinema ( I- AZ ) have yet to signal how they will vote on her nomination , leaving the possibility of there not being sufficient support in the Senate to confirm her as Secretary of Labor .
Despite not being confirmed , Julie Su remains the Acting Secretary of Labor . Because she is not filling that role under the Vacancies Act , it is still being determined how long she will stay in that position . Chairwoman Foxx of the House Education and Labor Committee sent a letter to the GAO questioning whether Su has the legal capacity to serve in this position . You can find the letter here . CLDA
Have an issue that ’ s affecting your business or a concern about legislation ? Get in touch with Mark Cossack , chair of CLDA ’ s Government Affairs Committee . Better yet why not join and become an active part of defending our industry ? The work of this committee is funded by CLDA ’ s Advocacy Fund . Your donation to this committee supports their year-round advocacy for your business success . Contribute today to keep this valuable work going .
10 customized logistics & delivery Magazine I summer 2023