Dear Chairwomen Wilson and Adams, and Ranking Members Walberg and Byrne:
In regard to the upcoming hearing titled “The Future of Work: Preserving Worker Protections in the Modern Economy,” the U.S. Chamber of Commerce strongly encourages the Subcommittees to consider the integral role of novel and innovative business models to the future of work.
New business models, such as the gig economy and the virtual marketplace, provide demonstrable benefits to consumers, entrepreneurs, and, ultimately, society as a whole. These new models provide flexibility and opportunity, and Congress should avoid changes to federal labor law that would stifle their growth.
These pioneering new business models are currently under attack at the federal, state, and local levels. For example, the state of California recently enacted AB-5, which included a stringent three-part test to determine whether an individual is an employee or independent contractor. In effect, AB-5 upends existing workplace relationships across a wide range of industries, affecting not just the sharing economy, but also freelance journalists, truck drivers, and programmers. This same test has started to appear in federal legislation as well, such as in H.R. 2474, the “PRO Act,” which the Chamber strongly opposes.
We thank you for considering our feedback and look forward to working with your subcommittees and with Congress on this issue.
Neil L. Bradley
Members of the Subcommittee on Health, Employment, Labor, and Pensions
Members of the Subcommittee on Workforce Protections