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How independent contracting works and why itís good for American workers

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Unread 11.16.20, 04:57 PM
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How independent contracting works and why itís good for American workers

11.16.20 07:00 AM

Recent legislative efforts to regulate independent contracting, such as Californiaís AB 5 law, have made it more difficult for millions of Americans to find and keep flexible work arrangements that better suit their lifestyle and income needs. During the COVID-19 pandemic, independent contracting has become indispensable in allowing workers to support their families and make ends meet. What do laws like AB 5 do, and how do they hurt independent contractors? Americans for Prosperity Senior Policy Analyst Austen Bannan provides those answers below in this interview on independent contracting, efforts to regulate it, and how these regulations hurt workers. What is independent contracting? How many independent contractors are in the United States? Independent contracting is when self-employed workers perform services outside of the direct control of clients on a contract basis. Independent contractors include gig economy workers, freelancers, and many self-employed entrepreneurs across industries. In May 2017, the Bureau of Labor Statistics determined that over 10.6 million workers were independent contractors, and over 15 million were workers with ďalternative work arrangementsĒ including independent contractors, on-call workers, and temporary help agency workers. However, this primarily captures only those who earn the majority of their income as independent contractors. The Freelancers Union […]

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