How the PRO Act Could Impact the Gig Economy

One of the hotly debated topics among gig workers is the potential impact of pending legislation known as the Protecting the Right to Organize (PRO) Act. The PRO Act is designed to protect freelancers and flex workers from the abusive practices of employers, but there are concerns that the legislation could limit the ability of some gig workers to work the way they want to.

The debate surrounding the PRO Act has only begun, and there is no guarantee that the legislation will pass in its current or an altered form. For now, this guide provides information on how the PRO Act could impact the gig economy.

What is the PRO Act?

The PRO Act is meant to empower workers by expanding the right to organize, reclassifying gig workers and freelancers as employees in many situations, and more. However, this reclassification could have drawbacks as well as benefits for flex workers across the country.

Impact on App-Based Workers

Much of the PRO Act is targeted at app-based workers that form the core of the gig economy. From rideshares to food delivery, individuals in these fields are gig workers in the truest sense.

One of the ways app-based workers could be most impacted by the adoption of this legislation is in their employment status. The new law would potentially treat a large number of gig workers as employees, as opposed to their current status as freelancers.

Under the PRO Act, gig workers are considered employees when they perform a task within the scope of their employer’s business. Many gig workers, despite usually being free from the direct control or supervision of the employer and customarily engaged in independent work, would qualify as employees under this Act.

This change in qualification is important, as employers must provide employees with substantially more rights and benefits than freelancers. On the other hand, because many employers cannot afford full-time help, there is a risk that many will simply lay off the gig workers they rely on, creating substantial job loss.

Traditional Freelancers and the PRO Act

The PRO Act is not limited to gig workers. Traditional freelancers like artists, writers, or journalists would also be impacted by the PRO Act if it were to pass.

One of the primary benefits cited by proponents of the PRO Act is the ability for freelancers who become employees to unionize. Collective bargaining is a powerful tool that can be helpful in some industries, but other workers might prefer the freedom of freelancing. Again, it remains to be seen what impact the final form of this law will have on the flex labor industry – if it ever passes in the first place.

HapiGig Offers Flex Work Solutions

Regardless of the outcome of this debate, HapiGig is positioned to provide workers and warehouses alike with the opportunity to connect. Our platform identifies and vets experienced warehouse workers who are brought on as W2 employees to take on flex hours.

If you are seeking flex hours for your warehouse, HapiGig is ready to help. Our online platform is easy to navigate. We have relationships with a deep pool of talented and reliable workers who are ready to fill your flex hour needs. Become a HapiEmployer today to start exploring your options for gig labor.

logo

HapiGig

(770) 462 3948 N/A
3510 Old Milton Pkwy UNIT A Alpharetta GA 30005 United States