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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:
â
⦠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;
$15 an Hour for Federal Contractors Is Great. A Union Is Better.
Biden could kick-start labor organizing, without approval from Congress.
Evan Vucci/AP Photo
President Biden pauses after signing an executive order, February 24, 2021, in the State Dining Room of the White House.
The Revolving Door Project, a Prospect partner, scrutinizes the executive branch and presidential power. Follow them at therevolvingdoorproject.org.
After Democrats in March voted down a national $15 minimum wage, President Biden signed an executive order raising it for federal contractors to $15 an hour by 2022. This is an excellent if insufficient step, both for the national Fight for $15 and for low-wage federal contractors. Itâs heartening to see the president use the powers of the executive branch to improve workersâ lives when faced with a setback in Congress. But this is far from the most powerful move Biden, who has proclaimed himself âthe most pro-union president,â could mak
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PRO Act’s Future Is Foggy But It’s Still in Play
Promo leaders fear the legislation could hurt the industry, but some labor advocates say such fears are unfounded.
A federal bill that industry leaders fear could have far-reaching impacts on the promotional products market – and potentially businesses, employees and independent contractors across industries – remains stymied in the U.S. Senate a month after the House of Representatives approved it along party lines.
The Protecting the Right to Organize Act (PRO Act), which aims to strengthen unions and encourage greater participation in unions, continues to sit with the Senate’s Health, Education, Labor and Pensions Committee, as it has since March 11, two days after the House approved the bill in a vote that saw only five Republicans go in favor with just one Democrat opposing.