‘PRO Act’ Could Impact Promo Industry
Industry executives are especially worried that the legislation would lead to labor cost increases and termination of independent contractors.
A new federal bill that would redefine what constitutes an independent contractor could have far-reaching effects on the promotional products industry.
The main thrust of the Protecting the Right to Organize Act (PRO Act) is to strengthen unions and encourage more workers to organize, which also poses potential implications for companies in the $20.7 billion promo industry.
Still, it’s language in the legislation related to independent contractors that has some industry leaders especially worried.
Introduced in the House of Representatives in early February, the PRO Act would largely wipe out independent contractor status under most scenarios and compel companies across industries in the United States to reclassify contractors as employees.