The right to earn a living is at the heart of the American Dream. In a free society, few rights are more fundamental — or more essential to a dynamic and prosperous economy. Generations of Americans have depended upon this right: the right to practice your profession and pursue your calling; to be a maker, a builder, a creator; to pursue happiness in your own way.
Yet at this moment, that right is in peril. The Biden administration has launched a multi-pronged assault on the right to earn a living in America. It is a concerted strategy designed to limit or eliminate the gig economy, freelancing, independent contracting, self-employment, and alternate work arrangements that entire careers are based on and entire industries have been built around. The livelihoods of millions of Americans are at risk.
The latest example of this assault is the PRO Act, a federal version of the disastrous Assembly Bill 5 (AB 5) that was enacted against workers interests by the California Legislature. The war on workers that has been underway in California for several years is now being nationalized by the Biden administration, and the devastating consequences of this anti-worker agenda are not a matter of speculation. They are already an established reality — a bitter, unfair, unnecessary reality — for many residents of California. AB 5 led to layoffs, limited opportunities for flexible work, and decreased chances for individuals to pursue supplemental income. This, all in the name of “worker protection.” California’s AB 5 should serve as a cautionary tale and certainly not something to emulate.
The reality is many Californians and workers across the nation choose independent work. It offers them the flexibility to set their own schedules and work on their own terms in a way that the traditional and more rigid employer-employee relationship simply does not. The independent work model particularly benefits those individuals who otherwise struggle to access work in the employer-employee system. These workers enjoy the freedom and flexibility that their arrangement provides. As a result, less than 9 percent of independent workers would prefer a traditional employer-employee arrangement. Further, independent work arrangements lower barriers to entering the workforce for those who would otherwise have difficulty such as parents of infants or young children, seniors, and individuals with disabilities. Independent work arrangements also provide a pathway to supplemental income for people who enjoy their employee status but can be a primary source of income for others. Forcing any of these workers into solely traditional employment would take away their ability and right to earn a living in the manner that works best for them and their families.
Independent workers, also referred to as independent contractors or freelancers, number over 70 million. From freelance writers, to gig workers, truckers, language interpreters, and nurses, independent workers undergird our economy. Many businesses and individuals depend on their services and products to stay open. AB 5 made it increasingly difficult for these workers to continue to operate independently in California, limiting their opportunities and income, and in turn negatively affecting their customers and clients. While some industries were exempt after procuring costly and time-consuming carve outs, many workers remain trapped by the restrictions placed on their ability to earn a living. The war on independent work harms the most vulnerable in society. We’ve seen it play out in California, with countless stories of livelihoods destroyed. It is no surprise, then, that hundreds of economists, as well as the California NAACP, Black Chamber of Commerce, and Hispanic Chamber of Commerce opposed efforts to limit independent work.
With an estimated 50 percent of the nation’s Latino community and 40 percent of the black community engaged in independent work, a national effort to limit these arrangements could put at risk the livelihoods and net income of 20 million workers from these communities.
Despite the negative effects that attacking worker freedom will have on parents, seniors, individuals with disabilities, and minority communities — and despite the overwhelming evidence that independent contractors prefer their current arrangement — the Biden administration is intent on limiting independent work. That’s why Congress must act to protect the right to earn a living and the diverse range of work arrangements that contribute to the American economy. We must oppose the ongoing attacks on worker freedom, and assure that worker preferences and autonomy are accounted for in all policy decisions.
The war on workers in California is not the path forward for our nation. It is a proven formula for harming the most vulnerable and would be a self-inflicted wound to our entire economy. A real pro-worker proposal is one that listens to what workers want, makes it easier to earn a living, and supports independent work. Now more than ever, we must support the right of enterprising Americans to pursue their work in their own way. We must protect the American Dream rather than putting it out of reach for millions.
Kevin Kiley serves as the U.S. Representative for California’s 3rd District and is chair of the Workforce Protections Subcommittee. Isabel Soto is the director of policy for The LIBRE Initiative.