CLDA Members:
H.R. 842, known as the Protecting the Right to Organize Act of 2021 (or the PRO Act for short) is coming up this week for a floor vote in the House of Representatives. This is the same “PRO Act” advanced in 2019 by the House. That bill died in the Senate in 2020, but we are in a new political landscape now and House Democrats are looking to advance the PRO Act again.
The PRO Act would have many effects on the American economy (and these have been well documented by various news outlets). But there are several provisions of the PRO Act which we believe would be very harmful to CLDA member businesses. These include:
- Imposing California’s stringent definition of “independent contractor” on the whole country, via a nationwide “ABC test”. This would, in effect, deny individuals the ability to work independently, threatening the large percentage of CLDA member companies which rely on the IC labor model, and taking away the flexibility that has allowed American businesses of all sizes to grow.
- Codifying an expansive “joint employer” standard—meaning that businesses could suddenly face liability for workplaces they don’t control and workers they don’t employ.
- Interfering with attorney-client confidentiality and making it harder for businesses, particularly small businesses, to secure legal advice on complex labor law matters.
Because passage of the PRO Act in its current form could truly be a devastating blow to our industry, we ask that you directly contact your Congressional representatives this morning to stress the importance of voting against the PRO Act.