The incoming Trump administration is set to take center stage in the new year, and it intends to make good on its promises to overhaul federal agencies. It should start with taking a hard look at the Department of Labor, which undermined the American workforce under the Biden administration at seemingly every opportunity.
By ditching outdated Labor mandates and championing the many benefits of flexible work, President-elect Donald Trump can unleash American productivity and prosperity.
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Reverse two key mistakes of the Biden Labor Department
Under the leadership of acting Secretary of Labor Julie Su, the Biden Labor Department hindered workplace flexibility and productivity. First, the department mandate requiring that most of its own employees return to the office at least half-time showed just how out of touch the agency had become regarding the now well-documented benefits of remote work.
In a 2024 Stanford study, employees who worked a hybrid schedule with two work days a week from home were just as productive and likely to be promoted as their colleagues who spent five days in the office. When employees switched to a hybrid schedule, the number of resignations dropped by 33%, saving the company estimated millions in turnover costs.
And those aren’t entry-level employees who are leaving for greener pastures; new research found that adversarial return-to-office mandates in prominent technology and finance companies are chasing away senior employees. It turns out, when you treat talent badly, talent leaves.
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The Biden Labor Department’s other major mistake was passing an employee classification rule change that targets workers seeking flexibility through 1099 independent contractor status, a group that has grown exponentially. In 2024, the number of independent workers surpassed 72 million, with one in five earning $100,000 a year or more.
Independent contractors tried to fight the 1099 classification rule change, taking to social media to share stories of flexibility in hopes the government wouldn’t take away their livelihoods. Their concerns were met with a shrug from the Labor Department, Su, and the White House.
Champion the benefits of flexible work for all parties
Trump has an opportunity to roll back these Biden missteps and lead the workforce into the modern era, and in doing so, he could show his commitment to meeting the evolving needs of hard-working Americans and entrepreneurs.
Protecting the livelihoods of 72 million independent workers would be a quick fix. All the Trump administration would have to do is reinstate the Trump-era classification rule that eased regulations restricting individuals from independent contracting work.
Promoting a vibrant, independent working class will also offer business owners more options and agility in meeting market demands. Studies show 1099 contractors can cost up to 30% less than W-2 full-time employees, a win-win when both parties value the arrangement.
I’ve been an independent contractor before, and as a business owner, now I get to see firsthand the benefits of independent work on the other side of the equation. At FLEX Partners, we’ve put together a team of incredibly talented independent professionals who work on their own time, in their own space, in the way that works best for their lives. The outcomes of this model speak for themselves: Our team is happy and engaged, while our share of the market continues to grow.
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Admittedly, there are some early worries regarding the Trump administration’s plans for worker flexibility and productivity. The new Department of Government Efficiency, or DOGE, has floated plans to impose return-to-work mandates on federal employees to push them to quit. Trump’s labor secretary pick, Rep. Lori Chavez-DeRemer (R-OR), who supported the PRO Act, would mandate inflexible definitions for independent contractors, severely limiting their use.
But there’s still time to turn this around. Focusing on empowering workers and employers will signal a true commitment to freedom, innovation, and prosperity. Trump’s vision for government efficiency is bold, but its success hinges on prioritizing the needs of the modern workforce. And after an election where widespread economic discontent cost Democrats the White House and Congress, Trump would be wise to take any step to deliver relief.
Whitney Munro is the founder, president, and CEO of FLEX Partners, a national consulting firm that employs a largely female workforce of employees and independent contractors.