The PRO Act’s Changes to ‘Independent Contractor’ Status: Unraveling the US Economy

April 20, 2021

The Protecting the Right to Organize Act, or PRO Act (H.R. 842, S. 420), would make extensive changes in US labor laws, including the PRO Act’s reformulation of “independent contractor” status. This is not a mere technical redefinition: it would substantially unravel and change large segments of the US economy and adversely affect millions of service providers who currently view themselves as independent contractors governed by their own entrepreneurial decisions.  If this aspect of the PRO Act is adopted, nearly all companies – nonunion and union – would need to reconsider whether and how their work gets done, especially in relation to temporary or contingent employees, casual workers, self-employed service providers, freelance professionals, and a vast number of other small businesses and contractors.