On June 21, The Senate Health, Education, Labor, and Pensions (HELP) Committee passed the PRO Act, a bill containing a slew of union-friendly provisions, including new worker classification rules that would make more workers employees rather than independent contractors.

The PRO Act (S.567) was introduced (by Sen. Bernie Sanders (I-VT)) this past May, and as approved by the HELP Committee, would classify a worker as an employee unless the worker is “free from control and direction in connection with the performance of the service,” the service is performed outside the usual course of the employer’s business, and the worker is “customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.”

The PRO Act also covers unionization activities and rules and expands on the law’s definition of unfair labor practices.

Prospects: Despite strong support from Labor and from most Democrats, prospects for the PRO Act’s enactment are not good. The worker classification issues are controversial, and the unionization provisions are intensely partisan. Thus, in this divided government context, there is little to no chance that this bill will be enacted into law this year. But it is likely to be a campaign issue ahead of the 2024 presidential and Congressional elections.

NAIFA Staff Contact: Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org.