The Protecting the Right to Organize (PRO) Act, which recently passed the U.S. House of Representatives, has received both praise and sharp critique. The polarizing legislation, which critics view as an attempt to undermine the independent contractor status of self-employed businesspeople, has created uncertainty within the industry.
Within the PRO Act is the ABC test, which has been included allegedly to cast a wider and more inclusive net for those wanting to join a union, but implicit in this action would be classifying many independent contractors as employees.
While this would benefit independent contractors who have been kept off the employee rolls for the benefit of the employer—who enjoys lower business costs and fewer taxes by transferring those responsibilities to the worker—those who enjoy the flexibility and freedom of independent contract work might be potentially lumped into this action as well.
The Direct Selling Association filed an amicus brief with the U.S. Supreme Court and is working on Capitol Hill to make sure the courts understand the implications of these legislative actions.
