The PRO Act Would Impose A Version Of California’s Job-Killing AB5 Law On The Entire Nation
- The Protecting the Right to Organize (PRO) Act would adopt a stringent standard for determining worker status and reclassify millions of independent contractors nationwide as employees, a misguided policy first implemented in the state of California by Assembly Bill 5 (AB5).
- AB5 was a blow to flexibility and independence for freelance workers.
- Unable to afford the increased costs of hiring freelancers as employees, companies scaled back or completely eliminated their use of independent contractors.
- Workers across hundreds of industries lost jobs, contracts, income, and work. Many entrepreneurs shuttered their businesses, which were already hard hit by the coronavirus pandemic.
Women Depend On Independent Contract Work
- Nearly half (46 percent) of the independent contractor workforce is female.
- Women are more likely than men to be employed in an alternative work arrangement.
- The top three reasons women cited for working in the gig economy were flexibility (44 percent), income (38 percent), and building a business (25 percent).
- Flexible contract work allows women to balance employment with caregiving for children, sick spouses, and aging parents or other priorities.
Government Should Not Deprive American Workers Of Their Livelihood
- There is not widespread evidence of misclassification of workers. Workers who believe they have been misclassified can file a challenge with state and federal agencies.
- Reclassifying independent contractors is an attempt to shoehorn workers into a one-size-fits-all traditional employment arrangement.
- Government should not put its thumb on the scale in favor of traditional models of work over the flexible arrangements that millions of workers prefer and depend upon.
- Lawmakers should expand worker freedom and give all Americans the chance to design the life they desire.
Click here to read a guide on How to Talk About Protecting Worker Flexibility & Freedom and learn more.