Coalition for Workforce Innovation v. Su: Brief to the US District Court for the Eastern District of Texas Beaumont Division in Support of Petitioner
Abstract
This amicus curiae brief by Dr. Liya Palagashvili examines the economic impacts of the U.S. Department of Labor’s (DOL) new regulation narrowing the definition of “independent contractor” under the Fair Labor Standards Act (FLSA). Dr. Palagashvili critiques the DOL’s methodology in assuming zero job losses from the regulation that narrows the definition of “independent contractor,” contending that the regulation will lead to significant adverse effects on the workforce, particularly among independent contractors. The brief argues that the DOL’s regulatory impact analysis lacks a reasoned cost–benefit assessment as required by the Administrative Procedure Act and erroneously predicts no job losses from the new rule. By presenting a scenario where the regulation is expected to merely convert independent contractors into employees without considering the realistic possibility of job terminations, the DOL overlooks the substantial negative impacts highlighted by both anecdotal and empirical evidence. Dr. Palagashvili references her own research and other studies, including California’s Assembly Bill 5 (AB5), to demonstrate that similar legislative changes have historically led to a decline in both self–employment and overall employment in affected sectors.