PPAI Opposes Threat To Independent Contractor Model
As first reported Wednesday in a PPB Newslink Breaking News Alert, PPAI and the promotional products industry are pushing back against a bill in Congress that would effectively ban independent contractor classifications under federal labor law. PPAI has also joined with several industry coalitions, such as the Coalition for a Democratic Workforce, representing hundreds of trade organizations, to oppose the legislation.
The Protecting the Right to Organize (PRO) Act, H.R. 842, amends the National Labor Relations Act to establish a new definition of employees which expressly eliminates independent contractors in the U.S. The new legislation makes a broad presumption that all workers in the U.S. are employees unless each element of a newly established “ABC” test can be demonstrated. PPAI is opposed to the PRO Act because, if signed into law, it would significantly change how thousands of promotional products companies interact with each other, and it will eliminate jobs in the industry.
Specifically, the PRO Act would abolish independent contractor agreements, enforce government control over private employment contracts and significantly broaden risk exposure to joint employer liability.
The legislation also sets new criteria for determining occupational status as an independent contractor instead of an employee. The proposed new criteria entail a three-pronged test for which each of the requirements must be proven if an independent contractor wants to retain his or her status under federal labor law.
The House is expected to consider H.R. 842 during the week of March 8, with a possible vote happening by the end of the week.
Click here to email and call members of Congress to educate them about why independent contractors in the promotional products industry do not want to be forced to reclassify as employees.