The House will vote Thursday on Democratic legislation that would nationalize California’s efforts to unionize drivers for Uber and Lyft and others in the “gig economy.” The legislation would reclassify many gig workers as traditional employees rather than contractors.
The legislation, the Protecting the Right to Organize Act, combines a number of union wish list items into one package. Among the items is language that “prevents employers from misclassifying their employees,” as the Education and Labor Committee’s fact sheet on the bill puts it.
The distinction is important because employees are covered by state and federal overtime, minimum wage, collective bargaining, and other workplace rules. Contractors, on the other hand, are legally considered separate businesses, so those rules don’t apply.
Critics argue that the “gig economy” represents businesses avoiding paying overtime or providing other benefits. California passed legislation last year, Assembly Bill 5, that narrowly defines most workers as employees. It was enacted over the staunch opposition of Uber and Lyft.
The PRO Act would tighten the rules for considering workers employees and would use the same standards as Assembly Bill 5. A Democratic committee official said the change only covers collective bargaining and union rights, however. Federal and state rules on overtime and minimum wages wouldn’t be affected.
Proponents argue that the shift toward classifying all workers undermines the advantages offered by contract work. Lyft reported that 91% of people who drive for them do it less than 20 hours a week as a way to supplement their income. Traditional employees would lose much of that freedom, such as the ability to set their own schedules.
Campbell Matthews, communications manager for Lyft, told the Washington Examiner that the company was concerned the PRO Act “could threaten the flexibility and freedom that attracts millions of people to work with companies like Lyft.” She added, “These are parents who have busy schedules, retirees, students, or individuals who have another full-time job. They choose driving because it works for them.”
Rep. Virginia Foxx, a North Carolina Republican and the top minority member of the Education and Labor Committee, slammed the bill. “By incorporating California’s newly enacted, highly restrictive definition of employee, the PRO Act will deprive millions of Americans the opportunity to work independently and start their own businesses,” she said.
The PRO Act is a top union priority. “An entire union-busting industry now works nonstop to block workers from exercising the freedom that the law is supposed to protect,” AFL-CIO President Richard Trumka said at a press conference on Wednesday. “It is not an exaggeration to say this is the most significant piece of legislation that will come before the House this year.”
The legislation is set to be taken up by the House tomorrow, where it is expected to pass. The legislation is not expected to go far in the Republican-controlled Senate.
