The National Employment Law Project (NELP) has disclosed data from the Bureau of Labor Statistics, indicating that approximately 16.75 million workers were self-employed in March, accounting for roughly 10% of the total workforce. Despite this significant figure, it appears that millions may be inaccurately classified as corporations label employees as independent contractors.

According to NELP, this misclassification is prevalent in low-wage industries where Black and immigrant workers are disproportionately represented. These sectors include home care, construction, and janitorial work. Corporations such as Uber, Lyft, and DoorDash have been accused of exploiting this misclassification by designating workers as independent contractors rather than employees. Since the onset of the COVID-19 pandemic, there has been a general surge in the number of self-employed workers, particularly among women of color. The Unemployment Insurance Modernization and Recession Readiness Act aims to establish a federally funded Jobseekers Allowance to support jobless workers not covered by unemployment insurance. This includes self-employed individuals, caregivers returning to the workforce, those recovering from extended illnesses, and recent graduates.

"Many workers thrive by running their own businesses," said Rebecca Dixon, president and CEO of NELP. "At the same time, millions of workers who are not actually in business for themselves are cheated out of pay, benefits, and worker protections when their employers wrongfully classify them as self-employed independent contractors." Dixon emphasized the importance of a new rule finalized by the U.S. Department of Labor that ensures only true independent contractors—people who run their own businesses—are exempted from crucial protections established to safeguard employees.

NELP is an advocacy group committed to creating a fair and inclusive economy where workers enjoy extensive rights and prosper in quality employment. Established in 1969, NELP collaborates with various local, state, and national partners to pursue its mission through legal and policy initiatives, research efforts aimed at capacity-building, and communication, according to the About webpage provided by NELP.