PRO Act Passes the House
Excerpted from a News Release by Truckload Carriers Association
TCA has recently engaged in many conversations regarding independent contractors, and rightfully so. On March 9, the U.S. House of Representatives passed the Protecting the Right to Organize (PRO) Act in a largely partisan vote. This pro-union legislation would, among other things, codify the ABC test at the federal level. The ABC test, which became a national concern when California passed it into law via A.B. 5, states that workers must be considered employees unless they pass all three prongs of the test. The B prong, which requires that an independent contractor perform work that is outside the usual course of the hiring entity’s business, would essentially eliminate trucking’s successful owner-operator model.
A.B. 5 is being challenged in the courts by the California Trucking Association. TCA has financially supported the case, as success would set a national precedent that the ABC test should not be applied to the trucking industry. Many other occupations have already been carved out of the bill, and we are hopeful the courts will agree that trucking should be among them.
While the PRO Act only needed majority support to pass through the House, it will need 60 votes to clear the Senate and make its way to President Biden. TCA is confident that it will not receive 60 votes, but the discussion about removing the filibuster in the Senate indicates that this conversation is not finished yet. TCA will continue to engage with the Senate about our concerns. If this situation changes and the PRO Act’s passage becomes more likely, we will let you know.
Of larger concern for the industry is the threat that this time-tested business model is under as it relates to the new administration. TCA supports the notion that independent contractors, in the form of owner-operators, are an integral part of the American trucking industry. We will continue to advocate on behalf of the truckload community in an effort to maintain the viability of an industry whose history is so richly entrenched in the independent contractor business model.