Congress is considering a bill that, among other things, could make it harder to categorize workers as independent contractors.
The Protecting the Right to Organize Act of 2021 would make significant changes to the National Labor Relations Act. Among other things, it would require that employers apply the ABC test to individuals when determining whether they can function as independent contractors. The test would closely mirror the one adopted by California as a result of a State Supreme Court ruling in 2018. It would require that independent contractors work free from control and direction of the company and that they provide a service outside the normal scope of the company paying them.
The legislation also would expand damages, fines and civil penalties imposed on companies, and allow personal liability against company officers and directors.
The bill passed the House of Representatives and, at press time, awaits hearings in its first Senate committee.
While the Pool and Hot Tub Alliance is monitoring the legislation, it expects resistance in the Senate. “This legislation could upend the workplace, disrupting 70 years of labor law,” says Jennifer Hatfield, PHTA’s vice president of government affairs and codes. “But … the bill faces opposition and a likely filibuster from the Senate Republicans, who contend that it would negatively impact workers and make it harder for businesses to operate across the country.”
