The Pro Act, which passed the House of Representatives in March, has two big components. The first is that it makes it easier for workers and independent contractors to organize unions. Thatâs certainly a concern for some employers. But the other, and bigger headache for small businesses, is that it potentially changes the way we define and classify employees.
Under the Pro Act, which is fashioned closely after Californiaâs 2019 Assembly Bill 5 legislation:
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⦠an individual performing any service shall be considered an employee (except as provided in the previous sentence) and not an independent contractor, unless:
(A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact;