Protecting Jobs and
The concept of working as an independent contractor has been around for centuries. In recent years, new technology has given millions of Americans the opportunity to earn money, work flexible hours and be their own boss through independent contracting. Military spouses, transitioning service members, stay at home parents, and people just looking to earn a few extra dollars have all benefited from this type of work—not to mention the millions of consumers who are able to purchase all manner of services right from their phone.
More traditional businesses like insurance, transportation, logistics, technology, and journalism also use the independent contractor model to one degree or another. The fact is that the “traditional” employment model, where your employer tells you where, when, and how to work just doesn’t fit every worker, or every business.
Unfortunately, some states are looking to pass new restrictions on independent contracting. Through laws like AB-5 in California, legislators are threatening to close off the opportunities offered by independent contracting, and smother new business models that benefit workers and consumers.
The U.S. Chamber of Commerce is committed to protecting the opportunities offered by flexible employment models. Lean more about our work on this issue below.
This legislative session, the Virginia State Legislature has taken up numerous pieces of legislation dealing with worker classification, in other words, when a worker should be considered an employee or an independent contractor.
California's AB5 law relies on three questions, originally written in the 1930s, to determine the legality of an independent contractor. Those questions are the basis for proposed legislation that could have a profound effect on the gig economy. A.)The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and B.) The person performs work that is outside the usual course of the hiring entity’s business; and C.) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
As seen on Forbes.com. California's AB-5 has made it more difficult for women like Aimee Benavides to maintain her flexible work schedule and meet the needs of her family.