Expect A Pro-Worker DOL With Biden, Senate Democrats

RELATED: Here are a pair of DOL rules a Democratic Congress could overturn.

President-elect Joe Biden will likely name his Department of Labor nominee soon, bolstered by an apparent Democratic takeover of the Senate that will allow for a more liberal DOL.

That is likely to mean a much stronger pro-worker focus. Rules and legislation tackling overtime pay and minimum wage are much more of a reality with Democrats in control of the Senate.

Democrats sweeping both Senate races in Georgia frees up Biden to pick more left-leaning candidates for these controversial posts.

For starters, he doesn't have to worry so much about difficult Senate confirmation fights. Secondly, pro-worker issues requiring legislation at least have a fighting chance of passing Congress.

The agenda starts with the secretary of labor. The Biden team has not said much publicly about their plans for the DOL, but names have leaked making it clear that the administration wants to move in a pro-worker direction.

Doing so requires confirmation of a labor secretary unpalatable to the Republican side. Two names have emerged in recent weeks: Julie Su, California labor secretary, and Boston Mayor Marty Walsh. Both have strong ties to rank-and-file workers.

Pro-Worker Resumes

A lawyer, Julie Su served as a California labor commissioner from 2011-18. She has an extensive background as a labor activist, co-founding Sweatshop Watch, and serving as litigation director at the Asian Pacific American Legal Center of Southern California.

Marty Walsh has been a union member for more than 30 years and was president of the Laborers' Union Local 223 when he was elected mayor of Boston in 2014. Walsh was a member of the Massachusetts House of Representatives from 1997 until 2014.

Biden campaigned on a vow to promote union issues and to make it easier for employees to join unions and collective bargain. Here are some worker issues a left-leaning DOL could tackle over the next four years:

• Minimum wage. Biden supports a $15 federal minimum wage. His official website called "wage theft" a serious issue he intends to address. He noted that “employers steal about $15 billion a year from working people just by paying workers less than the minimum wage.”
• Overtime. The DOL could revive an Obama-era overtime rule that had raised the minimum salary for exempt status to $913 per week ($47,476 per year), which was invalidated by the U.S. District Court for the Eastern District of Texas. The court ruled that the $913 per week salary level was too high. The Trump DOL overtime rule took effect Jan. 1, 2020, and the minimum salary for exempt status increased to $684 per week ($35,568 annually), up from $455 per week ($23,660 annually).
• Worker classification. Biden also supports aggressive prosecution of employers who violate labor laws, including those who intentionally misclassify employees as independent contractors. Biden has said that he will support legislation that makes worker misclassification a substantive violation of law under all federal labor, employment and tax law.
• Gig workers. Employer misclassification of “gig economy” workers as independent contractors, also has Biden's attention. Doing so prevents them from receiving their legal benefits and protections. Biden supports using a strong three-prong “ABC test” to distinguish employees from independent contractors.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.