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CLDA urges members to oppose anti-IC policies on behalf of the industry. The policies of Lori Chavez-DeRemer, the proposed nominee for Secretary of Labor, raise concerns about her commitment to workers’ fundamental freedoms, which should give our members pause. Of particular concern is her history of restricting the use of independent contractors (ICs) while she served in Congress, Since 90% of CLDA members rely on ICs, we believe the national implementation of such policies would burden the logistics industry and the broader supply chain.
We must act now to ensure that as part of her nomination process, the Department of Labor nominee commits to the freedom to work as one chooses and to prioritize a fair, flexible labor environment.
CLDA requests all members to urge their representatives to consider the significant impact of these policies on the economy, entrepreneurship, and worker freedom. Request your representatives to strongly advocate at all hearings and every opportunity for a fair and balanced approach that prioritizes flexibility, independence, and innovation in our workforce.
Restricting Workers’ Right to Choose
With 90% of CLDA members relying on independent contractors (IC), the national implementation of such policies would place immense burdens on the logistics industry and the broader supply chain.
Rep. Chavez-DeRemer co-sponsored the Protecting the Right to Organize (PRO) Act, which sought to impose strict restrictions on IC status through a rigid ABC test. This approach mirrored California’s controversial Assembly Bill 5 (AB5). AB5 made it practically impossible to be an IC in the state, forcing many to cease operations altogether.
Research from the Mercatus Center revealed that AB5 resulted in affected sectors experiencing a staggering 10.5% decrease in California jobs. These outcomes highlight the inherent flaws in measures like the PRO Act, which limit labor options rather than expand them.
Undermining Entrepreneurial Freedom
Chavez-DeRemer’s support for federal anti-IC policies reflects a troubling trend toward centralized control over employment arrangements. The PRO Act upends over two dozen state-enacted right-to-work laws, eliminates private ballots for union voting, allows secondary boycotts, targets connected companies, codifies an unworkable joint-employer definition, and the list goes on.
“Being pro-worker means defending the rights of all workers, including those who decide it is not in their best interest to form or join a union. No American should be intimidated or coerced into joining a union,” states Senator Bill Cassidy (R-La.), chair of the Senate Health, Education, Labor, and Pensions Committee.
CLDA fully endorses Senator Cassidy’s statements and believes workers should be free to work for themselves without undue interference.
CLDA Rejects Chavez-DeRemer’s Policies
Lori Chavez-DeRemer’s support of these policies significantly threatens worker independence and economic growth. These policies erode individuals’ rights to choose self-employment or employment that benefits their lifestyle and impose unnecessary burdens on businesses and their ability to innovate.
We urge all stakeholders to contact their representatives and voice opposition to Lori Chavez-DeRemer’s position on these policies and ask for a commitment from the Department of Labor nominee to prioritize the freedom to work as one chooses and foster a fair, flexible labor environment.