Pressure to Increase on Senate to Pass the PRO Act

PRO Act Update

Back in March, the US House of Representatives passed what’s known as the PRO Act.

While the legislation is gaining notoriety over its content on unions and employees’ right to organize, it also aims to completely change the job marketplace for freelancers and independent contractors.

However, the PRO Act faces a major hurdle, or two, in the US Senate. You can expect to hear more about the PRO Act in the coming days or weeks now.

Last week, Amazon workers voted against unionizing. Now, it appears pro-union lobbyists will be upping the pressure on Democrats in the Senate to get the PRO Act to President Joe Biden for his signature.

The only way that may happen is if the Senate votes to end the filibuster. And right now, that doesn’t seem likely.

Regardless, if you’re an independent contractor, freelancer, or small business owner with employees, you’ll want to closely follow this bill as it’s debated in the coming weeks. It could have major implications for all.

The PRO Act’s Effect on Small Business, Independent Contractors and Freelancers

Let’s look at what’s in the bill and what’s been said about it so far, mostly in debate among the US House of Representatives.

The House of Representatives passed the PRO (or Protecting the Right to Organize) Act March 9 by a 225-206 vote.

On March 11 the PRO Act (HR842) was received in the Senate and referred to the committee on Health, Education, Labor and Pensions (HELP). HR842 will be debated in committee before being presented to the Senate for vote.

The PRO Act and Independent Contractors

HR842, as it’s written now, adopts California’s ABC test for independent contractors. Here’s the text for the ABC test:

“An individual performing any service shall be considered an employee (except as provided in the previous sentence) and not an independent contractor, unless—

(A) The individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact; (B) The service is performed outside the usual course of the business of the employer; and (C) The individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

In other words, the PRO Act would change the 1099 classification of independent contractors. Many people currently working as freelancers or subcontractors are presently doing work or service “outside the usual course of business of the employer.”

US Rep. Elise Stefanik, R-NY, said that the ABC standard would eliminate contract-based work.

“It would be disastrous for independent contractors,” Stefanik said. “The majority of independent contractors prefer that status, and (the PRO Act) would take that choice away from millions of workers.”

Stefanik has introduced legislation called the Modern Workers Empowerment Act, which she called a bill to “protect their right and choice to be independent contractors.”

The PRO Act and Union Dues

Existing laws in 27 states prevent companies from requiring its employees to pay union dues or fees as a condition of employment. These laws are called “right-to-work” laws.

Those who back labor unions say “right-to-work laws crush unions. The PRO Act language states that employees can be required to pay union dues “notwithstanding any State or Territorial law.” Employees who decline to pay can be fired. Right-to-work laws would be made null.

The PRO Act and Union Organizing

Under the PRO Act, employers could not hold mandatory meetings to speak against creating a union or share facts about what union organization could mean.

The PRO Act also tightens the timeline for negotiating a collective bargaining agreement. It requires the employer and union to begin bargaining within 10 days of a written request, and if no agreement is reached within 90 days, either party can request a federal mediator.

Employers would be required to provide all names and contact information of employees to the union. Employers would not be permitted to replace workers who participate in a strike.

National Labor Relations Board (NRLB) fines

The PRO Act creates a fine structure for the NLRB to impose civil penalties. Penalties would up up to $50,000 for labor violations or up to $100,000 for repeated violations.

The National Federation of Independent Business’s Response to the PRO Act

According to the NFIB, 70% of its members oppose repealing state “Right to Work” laws. Nearly 100% of NFIB members believe small businesses should be able to hire independent contractors to perform tasks essential to their business.

The NFIB also opposes the PRO Act language which requires employers to provide the personal contact information for all their employees to union organizers without the consent of the employee.

“This is a bill with labor policy proposals that have not only been dismissed in the courts, but have been rejected by Congress for decades,” said Kevin Kuhlman, NFIB’s Senior Director of Federal Government Relations. “If passed, the PRO Act of 2019 will put employees’ private information at risk, expose small businesses to unrelated secondary boycotts, impose labor union dues on employees regardless of whether they are a member of the union, and dramatically change decades of employment law.”

“Small business optimism is at historic levels, and owners are increasing hiring, wages, and investment,” he added. “This damaging bill that would stifle such tremendous gains.”

President Biden Strongly Supports the PRO Act

The President clearly supports the PRO Act as part of his pro-union agenda. In a recent statement, he said, “The PRO Act defends workers’ right to strike—a fundamental economic right—and to engage in boycotts and other acts of solidarity with workers at other companies without penalty.

“It clarifies that employers may not force employees to waive their rights to join together in collective or class action litigation. The bill also closes loopholes in Federal labor law by barring employers from misclassifying workers as independent contractors and preventing workers from being denied remedies due to their immigration status.

“It establishes an expansive joint employer standard, allowing workers to collectively bargain with all the companies that control the terms and conditions of their employment. The bill allows unions to collect fair-share fees to cover the cost of collective bargaining and administering a union contract for all workers who are protected by the contract’s terms. H.R. 842 restores workers’ access to fair union elections, and ensures the results are respected.”

What’s Next?

Though it now seems unlikely that the Senate will vote to end the filibuster, an impediment to getting the PRO Act through the chamber, it certainly doesn’t sound the death knell for the bill.

Parts of the PRO Act could get through to Biden for his signature and if that happens, it could lead to big changes with your business.

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This article, "Pressure to Increase on Senate to Pass the PRO Act" was first published on Small Business Trends

Read more: http://feedproxy.google.com/~r/SmallBusinessTrends/~3/6P4YMkHeGQg/pro-act-update-senate-debate.html

What Type of Business Benefits From a C Corp? Watch this Webinar

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Do you know what legal structure makes the most sense for you if you are about to start a business? If you don’t know, it is essential you find out because it is one of the most important decisions you will make. A webinar titled “What Business Structure is Right for You?” is going to answer some key questions and guide you so you can make the best decision when you are ready to start. So what type of business can benefit from a C Corp or an LLC or even a Sole Proprietorship.

In collaboration with Anita Campbell, Founder and CEO of Small Business Trends LLC, Nellie Akalp, the CEO of CorpNet.com will be discussing the advantages and disadvantages of each legal structure.

The will be discussing:

The tax savings features of different entities. The C Corporation and which types of businesses benefit from this entity. The many benefits of incorporating a business or forming an LLC. Why the Sole Proprietorship of Partnership offers no liability protection for business owners. Why a Limited Liability Company (LLC) is so popular among business owners. The advantages and disadvantages of the S Corporation vs the LLC and what is best for which types of businesses.

Starting a business has many different steps, but the legal structure is one people find most confusing. And clarifying that confusion is absolutely essential if you want to start your business the right way.

Click the red button and register to attend this free webinar on Jan 17, 2021, at 2 p.m. (EDT).

 

Register Now

Featured Events, Contests and Awards

WEBINAR: What Business Structure is Right for You?WEBINAR: What Business Structure is Right for You?
June 17, 2021, Online

Picking a business structure is usually the first big legal decision for a new business owner and one of the most confusing. However confusing, it is an essential step to protecting your personal assets from any liabilities of the company. In this webinar, Nellie Akalp CEO of CorpNet.com, will share insight on business entities to help guide you to the best decision for your new venture.

WEBINAR: Best State to IncorporateWEBINAR: Best State to Incorporate
July 28, 2021, Online

Some say Delaware, others say Nevada while someone else may say your home state. What is the best state to register a business in? What if your business is expanding into new territory? At what point should you Foreign Qualify? Nellie Akalp, CEO of CorpNet.com, will go in-depth to answer these questions and more in this webinar.

WEBINAR: Steps to Start Your BusinessWEBINAR: Steps to Start Your Business
October 20, 2021, Online

Starting a business can be an exhilarating time, where everything seems full of potential and purpose. But navigating the logistics of launching a business can be daunting. In this webinar Nellie Akalp, CEO of CorpNet.com, will outline the steps necessary to legally start a business and get up and running on the right foot.

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April 28, 2021, Online More Contests

This weekly listing of small business events, contests and awards is provided as a community service by Small Business Trends.

You can see a full list of events, contest and award listings or post your own events by visiting the Small Business Events Calendar.

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This article, "What Type of Business Benefits From a C Corp? Watch this Webinar" was first published on Small Business Trends

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10 Personal Development Tips to Help You Love Your Small Business Life

personal development tips

Running a small business is hard work. But it can also be fun if you love what you do. Personal development is an important element of creating a successful, sustainable business. Use these tips from the online small business community to learn, grow, and love what you do.

Find Joy in Your Business

Lots of entrepreneurs get into business because they love it. However, that feeling can sometimes fade through the years. If you want to build a sustainable company, it’s important to enjoy it at least somewhat. John Jantsch dives into this topic with Shani Godwin in this Duct Tape Marketing post and podcast.

Add Fitness Workouts into a Busy Life Schedule

Taking care of your business requires a lot of time. But it’s important not to neglect your own personal health. Fitness is an important element of healthy work-life balance. Learn how to add fitness workouts in your busy schedule in this Aha!NOW post by Sarun Ravindrad. Then read what BizSugar members had to say about the concept.

Use Empathy When Reaching Out to Your Niche

The ability to understand your customers is essential no matter what industry you’re in. That’s why empathy is such an important quality for entrepreneurs. In this TopRank Marketing post and podcast, Susan Misukanis shares an interview with Nicole Brady to discuss further.

Take These Courses to Start Earning Money from Home

Working at home is an attractive option for lots of entrepreneurs and workers. However, there may be a learning curve for some. Luckily, there are plenty of resources to help. In this post on The Work at Home Woman blog, Holly Riesem Hanna lists the best options.

Choose a Lucrative Niche for Your Startup

It’s important to find a business niche that you love. But it’s also important to find one that can actually succeed. Some industries are better suited right now to making money than others. In this Crowdspring post, Katie Lundin lists steps to find these lucrative niches.

Look to These Resources for Advice

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Your workspace can make a major impact on how many tasks you complete throughout the day. This is an often overlooked part of running a business. And it can be even trickier for those who work from home. Luckily, Molly Stovold offers tips in this Process Street post.

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Starting a side hustle can be the perfect way to explore a new interest and expand your revenue. But even small business opportunities may come with legal elements. Nellie Akalp explores how side hustlers can legally protect themselves in this CorpNet post.

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As a small business owner, your ability to connect on a personal level with customers is key. Technology can make certain types of communication easier. But it sometimes comes with a cost. In this Small Biz Daily post by Kelsey Stuart, learn how to enjoy the best of tech without losing personal connections.

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Some business owners love their work enough to continue it for a lifetime. Others want to enjoy their retirement. If you fall into the latter category, planning is key. Rick Pendykoski lays out six retirement planning steps for small business owners in this Smallbiztechnology.com post.

If you’d like to suggest your favorite small business content to be considered for an upcoming community roundup, please send your news tips to: This email address is being protected from spambots. You need JavaScript enabled to view it..

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This article, "10 Personal Development Tips to Help You Love Your Small Business Life" was first published on Small Business Trends

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In the News: In-Store Shopping is Up Since the Beginning of the Year

In-Store Shopping

The one thing the pandemic has done is decimate in-store shopping. This, in turn, was responsible for a huge uptick in online shopping and delivery. But starting in 2021 that trend was changing as more people ventured out and started shopping in stores. This according to an article titled, In-store Shopping Up 28.5% Since Start of 2021, in this week’s roundup.

According to the report by Zenreach, in-store shopping has been increasing by as much as 28.5% since the beginning of the year. And the shift back to in-store shopping is a good indicator of things turning around, albeit slowly. However, for retailers, this good news is seen as a triumph in a year riddled with one bad news after another. For small retailers, this means preparing for reopening as some businesses switched to only online sales or closed entirely.

This is one of the many articles that address the issues small businesses face on Small Business Trends. While the roundup highlights the top articles for the week, there are many others that are equally as informative on matters dealing with small business.

Take a look at this week’s roundup and get informed on everything from retail trends to where to get loans to buy a business, and ways to improve your customer experience.

 

Small Business News Roundup – April 9, 2021

Here are the rest of the headlines making news for small business owners this week:

43% of Remote Workers Miss the Water Cooler Chats with Co-workers

Impromptu chats at the water cooler are a feature of office work that 43% of co-workers who have been working remotely during the last year miss the most. 36% miss a better workstation or office set-up, while 25% miss eating lunch out the most. 20% of remote workers miss Happy Hour with colleagues.

Smallest Businesses Seeing Slower Sales Since Pandemic

Small businesses with ten employees or less are seeing slower sales since pre-pandemic times. This was the finding of a report by Skynova, online invoicing specialists for small businesses. Skynova surveyed more than 1,000 professionals to find out how digital changes have impacted their business and employees during the health crisis.

Oracle NetSuite Names Ramon Ray as its First Entrepreneur in Residence

Ramon Ray, founder of SmartHustle Media, has joined Oracle NetSuite as its first Entrepreneur in Residence. Throughout history, an Artist in Residence enjoyed the hospitality of a host, while sharing knowledge and experience. Ray said that his background makes him a great fit for Entrepreneur in Residence.

Where to Get a Loan to Buy a Business

When seeking to buy an existing business, you may need to get a loan to cover all or part of the initial purchase. There are plenty of small business financing options to choose from, including SBA loans, bank loans, seller financing, and online options like Fundera and Lendio.

Why Every Small Business Should Practice “Zohonomics”

Companies can be built for other things in addition to making a profit. Executives at Zoho practice what they call “Zohonomics” where they design their growth strategy around humanity instead of just in monetary terms.

10 Perks Companies Can Offer to Boost Employee Morale and Retention

In addition to the position itself, company benefits are one of the most important elements that candidates carefully consider when gauging whether they want to join a company. Once an employee is on board, these perks can also play a role in whether or not an employee chooses to stay and whether they get the sense that the company values their contributions.

Image: Depositphotos

This article, "In the News: In-Store Shopping is Up Since the Beginning of the Year" was first published on Small Business Trends

Read more: http://feedproxy.google.com/~r/SmallBusinessTrends/~3/_GV8fca1tT8/small-business-news-roundup-april-9-2021.html

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