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Does Biden’s Pro Act contain a nasty surprise for small businesses?

By May 9, 2021May 10th, 2021No Comments

(This article originally appeared in The Guardian)

Hidden inside President Biden’s $2.5tn infrastructure proposal is another piece of legislation that could have a significant impact on many small businesses, including mine. Or not.

It’s called the Protecting the Right to Organize Act – or Pro Act – and if it passes one thing’s for sure: the use of independent contractors and freelancers in businesses of all sizes will be challenged.

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. That’s 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 California’s 2019 Assembly Bill 5 legislation:

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