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How the 2022 PRO Act Will Affect YOU

Have you heard of the 2022 PRO Act? This is currently in the Senate as a bill that would drastically change how employers treat contractors. The Protecting the Right to Organize (PRO) Act would classify many freelancers as employees rather than independent contractors. Basically, any vendor you currently provide a Tax Form 1099 will be impacted somehow.

The “ABC test” in California would become a federal rule for worker classification. The Act does not allow employers to classify workers as independent contractors unless “(A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact; (B) the service is performed outside the usual course of the business of the employer; and (C) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

If you feel this new law will have a negative impact on your business, please contact your Senator! The bill has been referred to the Committee on Health, Education, Labor, and Pensions. Here is a link to bill H.R. 842. If your Senator is on the committee, you have even more pull. Here is the list of committee members:


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