With control of Congress and the White House, Democrats are making labor policy one of their first priorities. Ironically enough, that’s actually bad news for independent contractors and gig economy workers across the country.
The legislation at the core of their agenda is the PRO Act, which Democrats just re-introduced with sponsors including Speaker of the House Nancy Pelosi and Senate Majority leader Chuck Schumer. Among many other things, the bill would severely restrict the legal definition of independent contractors in a way that would largely end the gig economy as we know it.
The left, naturally is
looking to help American workers outlaw gig work because it will benefit unions
The legislators’ stated intention is to protect workers and bolster their rights under law. Through the reclassification of independent contractors, Democrats hope to force gig economy companies to hire workers as full employees and thus provide them the accompanying salaries and benefits.
“The men and women of labor are the backbone of our economy and the foundation of our strength,” Pelosi said. “With American workers seeing their lives and livelihoods devastated by the ongoing pandemic and economic crisis, the reintroduction of the PRO Act is more important than ever.
So drivers for Uber, or Lyft, those who work delivering food for businesses like Doordash, or Instacart and bartenders who work independent functions will be screwed. This is not about “empowering” workers. It will, instead, take options away from workers. I know personally I made very good money bartending events. The company listed events, weddings, banquets, etc. and I could choose when to work, and the money? $16 an hour, plus tips many times was very nice. How would it help me, or anyone if those options are banned by the government? It will not of course. So, how would this socialist law work?
The PRO Act would outlaw millions of existing jobs with the stroke of the president’s pen.
After all, it would make illegal any independent contractor arrangement where the worker provides services within “the usual course of the business of the employer,” meaning jobs like Uber drivers, Doordash drivers, Instacart grocery deliverers, and more could not exist as we know them. There are roughly 10.6 million independent contractors in the US, accounting for 6.9 percent of all employment. Some of these workers might not be affected by the law and some others may get hired on as full-time as a result. But there’s little doubt that millions more would find themselves unemployed.
For example, Uber alone employs more than 1 million drivers in the US. It’s nearly certain they would all lose their jobs under the PRO Act, because Uber already runs a loss, not a profit, and adding an independent contractor as a full staff member counts roughly $3,625 per driver. Basic math tells you that most of these workers would end up being let go; Uber could even go under. After all, the California legislation nearly forced Uber and Lyft to shut down operations in the Golden State altogether until a last-minute ballot referendum modified the law.
Again, this will stifle the economy, take away jobs, and DISEMPOWER workers. This is, in fact, another front in the war on individualism, liberty and self-determination. Sad thing is a LOT of gig workers likely cheerfully voted for Biden because “Orange Man Bad!”. I hope this might wake those damned fools up.