Senate Confirms Lori Chavez-DeRemer as U.S. Labor Secretary, While TIA Battles PRO Act’s Threat to Independent Contractors
The Senate has confirmed Lori Chavez-DeRemer as the new U.S. Secretary of Labor. She will lead the Department of Labor (DOL) at a time when worker classification rules and labor policies are under debate. Her confirmation comes amid legal battles over workforce reductions and stricter regulations for independent contractors.
Chavez-DeRemer was approved by the Senate Committee on Health, Education, Labor & Pensions with a 14-9 vote, receiving support from Republicans and some Democrats. During her confirmation hearing, she was asked about the Protecting the Right to Organize (PRO) Act, which strengthens union rights and tightens worker classification rules. While she did not clearly state her current position, her past record suggests she supports policies that could change employer-employee relationships.
TIA’s Opposition to the PRO Act
The Transportation Intermediaries Association (TIA) strongly opposes the PRO Act, warning that it threatens the independent contractor model that the third-party logistics (3PL) industry relies on. Key concerns include:
- Independent Contractor Reclassification – The PRO Act applies the strict “ABC test,” making it harder for owner-operators to remain independent. This could disrupt freight brokerage and trucking.
- Expanded Joint-Employer Rules – The bill broadens the definition of “joint employer,” which may increase liability for 3PLs working with motor carriers that use independent contractors.
- Unionization Changes – The law makes it easier for unions to organize and harder for businesses to challenge elections, limiting flexibility for logistics firms.
TIA’s Advocacy Efforts
TIA will continue to push back against the PRO Act, advocating for policies that protect independent contractors and maintain flexibility in the supply chain.
