Giving Independent Contractors a Voice in Delaware

By former Senator Blanche Lincoln

Independent contractors are the quiet engine of Delaware’s economy. We value the employment provided by large enterprises, but the fact is that nearly all of the net growth in U.S. jobs over the last 30 years has been created by small startups, which include independent contractors. Yet the economic survival of the 10.3 million people who choose to be their own bosses and grow their own businesses are being jeopardized by overwhelming regulations at the national and here in Delaware.

It’s My Business is a new coalition of individuals and organizations who support the rights of independent contractors. Our aim is to give a voice to the millions of people who have chosen to be entrepreneurs and have the opportunity to build their own businesses. At a time when our nation’s workforce is undergoing fundamental change to more flexible, entrepreneurial work, we believe it is critical to raise awareness about the vital contribution independent contractors make to our economy. We also want to put a spotlight on the numerous legal and regulatory threats that are making it more difficult for them, and the businesses they support, to succeed.

At the state level, over half of the states have either approved or proposed new laws restricting independent contracting arrangements. Several other states have also formed statewide task forces to increase audits and prosecutions of independent contractors and their clients.

This issue has been important in Delaware in recent years. In 2009, state lawmakers passed the Workplace Fraud Act, which imposes stiff monetary and other penalties on employers in construction services who willfully misclassify employees as independent contractors. In 2012, the General Assembly rejected efforts to extend the Act to employees in all industries, with a few limited exceptions. While certain safeguards are necessary, we do not want to see any legislative or regulatory action that could have a chilling effect on the millions of independent contractors who are supporting the jobs fueling our recovery.

On the national front, the federal government has allocated $25 million for a joint IRS-Department of Labor initiative that is making it harder, if not illegal, for independent contractors and their clients to work together. Targeting mainly small businesses is a strategic decision because they are easier to prosecute than larger companies with more legal resources.

In addition, federal agencies have joined forces with 11 states to jointly investigate and prosecute independent contracting arrangements.

These new regulatory actions are based largely on misinformation about the individuals who are willingly exercising their right to work for themselves. A U.S. government study shows that more than four out of five of self-employed prefer their jobs to working as salaried or hourly employees. The actions also ignore the vital role that independent contracting plays in Delaware’s economy, creating new jobs and providing services more efficiently and effectively than would be possible under a different structure. Most importantly, adequate laws currently exist to deal with willful misclassification of workers.

Throughout my career, I have been a staunch proponent for small businesses and entrepreneurs and I fought hard for their rights during my time serving Arkansas in the U.S. Senate. Their contributions to virtually every aspect of our economy simply cannot be overlooked. It’s My Business is carrying that same torch today. We are committed to protecting the right of independent contractors to choose a way of life that works best for them, and the right of businessmen and women to pursue a business model that provides lifestyle flexibility for them and their families and creates jobs and competitiveness for America. But we can’t do it alone. We are asking you to get engaged and take a stand, too. Visit our website at www.itsmybusiness.com. Tell your elected state and federal bureaucrats to stop their attacks on independent contractors. They are the embodiment of the entrepreneurial spirit in this country, not to mention a powerful engine driving our economic recovery. They deserve our protection. The people of this state can’t afford to let them down.

About the Author: Sen. Lincoln is chairwoman of the It’s My Business coalition which is made up of individuals and organizations that support the over 10.3 million people who are exercising their right to work for themselves. She was the youngest woman elected to the U.S. Senate, representing Arkansas from 1999 to 2011, and previously served in the U.S. House of Representatives from 1993 to 1997.

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