Last week, a bipartisan group of lawmakers introduced a new bill to protect independent contracting in America.
The Worker Flexibility and Choice Act, if passed, would create “new, voluntary “worker flexibility agreements” to protect the ability of independent contractors to maintain their work flexibility and work for multiple companies if they choose.”
The one pager explains their proposal would “blend elements of independent work with workplace benefits traditionally only available to employees.”
More specifically, the crafted legislation would further: protect worker freedom and flexibility; “promote worker freedom without infringing on certain workplace rights, including protections against discrimination, retaliation, and harassment”; allow independent workers to maintain multiple clients without any interference; and give workers “written summary of any health, pension, training, other benefits they may be eligible to receive.”
The legislation was introduced by Rep. Henry Cuellar (D-TX), Rep. Elise Stefanik (R-NY), and Rep. Michelle Steel (R-CA).
Cuellar, the lone House Democrat to oppose the Protecting the Right to Organize (PRO) Act, said this bill would protect independent contracting and help modernize the economy.
“Texas workers have expanded into the gig economy at rapid speed for the flexibility and opportunities that it provides. This legislation promotes that type of independent work,” said Congressman Cuellar. “The bipartisan Worker Flexibility and Choice Act is important to ensure that our gig economy has the room and resources to expand. Thank you to my colleagues, Congresswomen Stefanik and Steel for their commitment to supporting our modernizing American economy.”
“Today’s workers value independent work for the flexibility and economic opportunity it provides, yet too many restricting standards on independent work diminish freedom for workers and stifle these innovative work arrangements. The bipartisan Worker Flexibility and Choice Act will empower workers to choose the type of work that best fits their needs, while allowing businesses to offer workplace benefits traditionally only available to employees. I thank Congressman Cuellar for partnering with me on this bipartisan effort to support independent workers,” added Congresswoman Stefanik.
It’s a major departure from the PRO Act—which would make independent workers default employees, require unionization as a prerequisite for employment, and abolish right-to-work laws, among the many disastrous provisions contained in the bill.
Unsurprisingly, President Biden and his party have made passing the PRO Act a top priority. In March 2021, President Biden issued the following statement in support of the PRO Act:
I strongly encourage the House to pass the Protecting the Right to Organize (PRO) Act of 2021, which would dramatically enhance the power of workers to organize and collectively bargain for better wages, benefits, and working conditions.
The PRO Act passed the House of Representatives, but is currently stalled in the U.S. Senate because three Democrat Senators—Senators Sinema, Kelly, and Warner— refused to sign-on as cosponsors.
Now, the Biden administration is looking to use regulatory fiat through the Department of Labor and a new Memorandum of Understanding (MOU) forged between the Federal Trade Commission (FTC) and National Labor Relations Board (NLRB) to “crack down” on the gig economy.
But their efforts are expected to fail.
The Worker Flexibility and Choice Act isn’t the first effort to protect independent workers from misclassification by Democrat-backed unions and their backers in the federal government. Republicans proposed the Modern Worker Empowerment Act last year to make the “definition of “employee” consistent across federal and state statutes to decrease inconsistency and confusion for American workers and entrepreneurs hoping to do business with independent contractors.”
Much to the chagrin of Democrats, independent contracting is very popular in the United States. When contrasted with unionized jobs, which is shrinking and currently stands at 10.3% of the workforce, the freelance workforce poses a significant danger to these special union interests.
A 2021 survey found 87% of independent contractors report being happier in flexible work arrangements and that 78% of respondents report being more fulfilled engaging in said contracts.
That’s why California truckers just organized days’ long demonstrations at the Port of Oakland to protest Assembly Bill 5 (AB5), the inspiration behind the PRO Act, which now applies to their industry. Because the Supreme Court refused to hear a challenge to AB5, 70,000 owner-operators will be adversely affected by the law— changing their worker status from independent contractor to employee.
Bill Aboudi, owner of AB Trucking, told CNBC: “So far there has been no contact with the governor’s office. It seems the governor is not concerned about taking American workers’ rights away.”
Aboudi added, “These are independent, small businesses that choose to operate their own trucks, and now that right is taken away from them. They do pay taxes, they do have insurance. It’s their choice to do that.
While the Worker Flexibility and Choice Act’s passage is uncertain in the 117th Congress, legislative efforts to protect workers from abuse and exploitation by anti-gig economy proponents should be applauded.