Promo’s Independent Contractors At Risk In Labor Proposal

I have been a multi-line rep nearly all of my 40 plus years in business. I pay all of my own expenses, work at my schedule, and pay my yearly taxes. I see no reason for me to now be called an employee. Changes like this will affect many multi-line reps who depend on smaller businesses who cannot afford to pay a salary to an outside salesman. These changes should be removed and the promotional products industry should be left to do as they have for many, many years.

Note sent to DOL- To whom it may concern, For years I have CHOSEN to be an independent contractor. If I wanted to be considered an employee for an organization in the Promotional Products industry, I would currently be working with an organization that offers "employee" status. We do have a choice in this industry. Please do not take my freedom away to work as an independent contractor. Thank you for not taking our freedom away. Sincerely, Karen Ball kball@geiger.com

I am an independent distributor of printing and advertising specialties and have been for 23 years. I worked for a nationwide printing company prior to that in a non-union environment and learned a lot from 14 years of experience there. I am now a print and advertising specialties representative and farm our family farm of 150 acres. The independent distributor business is my reliable source of income since farming is unpredictable from year to year based on input costs and the weather fluctuations from year to year. I cannot afford for the government to place more restrictions and more paperwork on my business in an attempt to force me out of the one industry that consistently makes a profit year after year. Please do NOT place more regulations and restrictions on independent contractors!

I have been an independent contractor in the Promotional Products industry for over 30 years and strongly disagree with the proposed new rule. Not only have I paid my FULL amount of SS tax, not had any "paid vacation or sick time", the only office space available to me is the one I have created in my home, work on commission only which is reported on an annual 1099 to me, filed a Federal tax return every year (and a State tax return every year I lived in a state that had a state tax) and I STILL LOVE being an independent contractor and would not change a thing. My job allows me to own my own business, work the hours that I want (even if it is 65 hours per week) and make as much money as I want! If the changes pass, the costs for our suppliers and the companies we are independent contractors for will greatly increase and will present hardships to all of us. Many independent contractors will lose their jobs, smaller suppliers could go out of business if their costs increase any further. I am pretty sure you do not have a group of independent contractors begging to be transitioned to "employee", as it would greatly limit their ability to earn as much money and pay as many taxes as they do now. The one thing that was very difficult for me was when my husband lost his job (with GREAT INSURANCE BENEFITS) at age 62 1/2 and after his cobra ran out we had to purchase private health insurance (before Obama care existed) but I still preferred being an independent contractor to being an employee. So many of us have spent years building our businesses, have very loyal customers who refer new customers to us all of the time and contribute to our local economies in many ways. Thank you Susan Maki

Dear Ms. Looman, I am writing to express my concerns about Docket Number WHD-2022-0003, entitled the Employee or Independent Contractor Classification Under the Fair Labor Standards Act. I represent a $22 billion industry comprised of nearly 500,000 Americans, 98 percent of which are small businesses. Approximately 35 percent of our industry relies upon the independent contractor model. This newly proposed rule would significantly change how thousands of promotional products companies interact with each other. If this regulation were enforced, most businesses in the promotional products industry could not hire independent contractors as employees, and instead would be forced into untenable relationships that would cause significant job losses for my industry. In short, this regulation would deprive thousands of independent contractors in the promotional products industry from earning an income. Just as with several other industries, promotional products companies rely on the services provided by independent contractors. Unlike the gig economy, this is a popular business model which is mutually beneficial for the host companies and the contractors in circumstances where traditional employment relationships are not pragmatic for either party. Promotional consultants in the U.S. are mostly small business owners-they set their own hours and schedules, they set their own rates, they select their clients, and they market under their own brands. There are several distinct factors that establish a sharp contrast between independent contractors in the promotional products industry and the gig economy. For example, in the gig economy, the workers are not operating with full autonomy because workers must use the larger company’s application to provide the relevant services. Independent contractors in the promotional products industry are entrepreneurs who operate outside the host company’s control while being able to outsource many of their financial concerns to their affiliate companies. Other value-added benefits enjoyed by independent contractors in my industry include peer-to-peer support, sales and marketing tools, and supplier access. Promotional consultants remain independent because they can run a business as their own, decide their own career path, and be active in their families and communities, among other incentives. These contractors are self-employed even though they may sell on behalf of only one company. This model is the opposite of the gig economy on which many labor law proposals have been predicated. Without the support of a larger firm essentially acting as a lender to the consultant, the promotional consultants would either have to receive payment from end-buyers in advance or have the financial ability to finance the orders themselves. A huge majority of independent contractors in the promotional products industry are very small businesses, often sole proprietors, and are unable to self-fund these transactions. I understand your concern about labor misclassifications. However, I want to emphasize that my situation is distinguishable from those practices. The enforcement of this new rule will have a devastating impact on tens of thousands of jobs and businesses in my industry. Unlike the members of the gig economy on which many similar labor law proposals have focused, the relationship between independent contractors in the promotional products industry and their host companies is reciprocally beneficial for both parties. Thank you for your consideration of this important regulatory matter. P R O M O T I O N A L P R O D U C T S A S S O C I A T I O N I N T E R N A T I O

As an independent contractor, I set my own hours, work when and if I want to. My ability to work my own pace, my own time allow me to pay my bills, feed my family and be self sufficient. And I pay my own taxes which is a higher tax rate than as an employee. Don't put new restrictions on independent contractors.

If the rule is implemented as it is currently written, it could result in thousands of independent contractors in the promotional products industry having their livelihoods threatened. Employees are just that....NOT independent contractors