Ind. Contractor Reform


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There is an effort underway that will completely change labor relations between contractors and companies by making "independent" contractors obsolete. Currently, if someone with a certain skill, trade or experience is in demand, this person may work for more than one company, using this skill, as a "contractor". For example, if a delivery person wishes to work some hours for one company as needed and some hours for another company, they can. Both companies will generally pay this individual per hour based on the number of hours worked. Since the "contractor" enjoys the benefits of flexible work, setting their own schedule and determining when, who and where they work; they are not given certain benefits and many do not require such. When companies pay "benefits" to employees, they are typically bound by a contract and other legal agreements. This is not always the case for flexible, independent contractors as they prefer this type of work/lifestyle arrangement.

However, certain legislation, pushed by the Democrat majority, seek to make this type of independent contracting illegal - virtually eliminating it by "recategorizing" how jobs are classified. Employers will be forced to pay each employee full wages and benefits as determined by a contractual obligation. Therefore, independent contractors will no longer be able to work for more than one employer on an hour-to-hour basis as employers will not be able to afford this arrangement. Despite the fact that many workers prefer this type of arrangement, and those who don't, simply do not engage this activity, independent contractor "reform" will make this activity virtually illegal.

AWF opposes independent contractor reform as legislation should not dictate the type of relationships workers are able to enter with perspective employers. Specifically, reforming this arrangement will increase the cost of goods and services for consumers and disenfranshises workers by denying them the flexibility and autonomy of contract work.

Index of Worker Freedom Congressional Ratings Davis Bacon Research Labor Statistics