We Are a Nation of Independent Contractors

American workers want flexible work arrangements. Technology has expanded independent contracting work through the gig economy.

  • In 2019, an estimated 57 million Americans did contract work.
  • 1 in 5 jobs in America is held by an independent contractor.
  • Nearly 75 percent of contractors are working independently by choice.

AB 5 Harms Workers

California’s AB 5 makes it more difficult to classify workers as independent contractors. This:

  • Raises costs for businesses. Reclassifying workers and complying with wage and hour laws, unemployment insurance, and other labor laws would increase labor costs by an estimated 20-30 percent leaving less for job creation and wage increase.
  • Threatens the economic security of workers. Some businesses are opting to lay off their freelance workforce. Independent contractors report losing contracts, being laid off from projects and unable to find freelance work.
  • Kill flexible work arrangements. Millions of Americans prefer to be their own bosses instead of working as employees.

American Workers Need Freedom & Flexibility

AB 5 isn’t just a threat to Californians. Its flawed approach is spreading:

  • Several other states have introduced or are considering adopting tightened requirements for independent contractors.
  • The U.S. House of Representatives passed the PRO Act (H.R. 2474), which adopted AB 5’s standard for classifying independent contractors.

AB 5 is a fundamentally bad policy that should be reversed and abandoned. Instead, lawmakers should look to expand worker freedom and give all Americans the chance to design the life they desire.