Is the PRO Act Anti-Small Business?
Employers, are you aware of the PRO Act ('Act') that is currently pending in the United States Congress as part of the Biden Administration's proposed $2.3 trillion infrastructure legislation? You need to know what it is, what it says, and how it may impact your business.
The Act, commonly known as the "Protecting the Right to Organize Act", removes significant points from the established unionization process making it easier for employees to unionize the workplace. Beyond the adjustments for a unionized workforce, which many businesses feel is not the biggest concern, the law would also redefine what makes your worker an 'employee' or an 'independent contractor'.
The Act would implement a new and stringent test, one already established in California, to define what qualifies for a worker to be an independent contractor. The fear is that freelancers, a significant and growing portion of workers, would lose their freedom to choose how they want to work. Further, it would clearly handcuff businesses, especially small businesses, on how to run their business.