Keep the “independent” in independent contractor.
Most independent contractors wish to stay that way. Some may believe that incorporating their businesses or forming LLCs protects them from legislation based on the ABC Test for employment status, but recent actions indicate that’s likely not true. In California, more than 100 professional exemptions were added in the first year after the state’s ABC Test law took effect, because even with a business-to-business exemption in the law, companies feared the ABC Test would still subject them to substantial fines if they hired California independent contractors. Additional professions are continuing to lobby for exemptions now.
Proponents of ABC Test laws say they are intended to protect independent contractors who are being exploited, but by and large, independent contractors do not want to be employees. Study after study shows that 70 to 80 percent of independent contractors want to keep working that way. An Edelman study of independent contractors that collected responses during the height of the Covid-19 pandemic showed that 60 percent of freelancers say there is no amount of money that would get them to return to a traditional job.
According to the 2019 “Freelancing in America” survey:
• 57 million people, or 35 percent of the U.S. workforce, are freelancers, up from around 53 million in 2014.
• Freelance income currently makes up almost 5 percent of the country’s GDP, or close to $1 trillion.
• 46 percent of freelancers can’t take full-time, traditional jobs for personal reasons, such as health issues and caregiving for sick or aging family members or young children.
We are FIGHT FOR FREELANCERS USA, a nonpartisan, grassroots coalition of independent contractors who oppose the use of the ABC Test in federal law. Join us.