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  • Kurt Schmidt

What is the Pro Act and how does it effect your small business?


House Democrats have approved a bill that would provide protections for workers trying to organize, a measure that is the labor movement's single biggest legislative priority in this Congress.


In short, it does 2 things that could seriously affect small business owners, especially very small businesses and solo entrepreneurs.

  1. The PRO Act is pro-union legislation. The “PRO” stands for Protecting the Right to Organize. The PRO Act was passed by the House last month and is pending action in the Senate.

  2. The PRO Act would require companies to hire many independent contractors as W-2 employees. It would follow what’s called the ABC guidelines to define independent contractors.

Passage of the PRO Act would represent the biggest change in labor law in decades. Below is a summary list highlighting some of the changes the Act would bring to existing labor law.


  • Extend joint employer liability.

  • Expand “employee” definition

  • Implement numerous changes to union election rules

  • Eliminate right-to-work protections.

  • Allow more picketing and more strikes.

  • Eliminate an employer’s right to permanently replace economic strikers and prohibit offensive lockouts.

  • Mandate interest arbitration for initial contracts based on nebulous factors

  • Enhance remedies and penalties

  • Dissuade legal advice


For the full Text of the bill see https://www.congress.gov/bill/116th-congress/house-bill/2474/text


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