Sometime today the United State’s House of Representatives will begin debating H.R. 842 “Protecting the Right to Organize Act” However, there is a huge problem with it it’s current form. I need you to imagine that it’s 1937. Seriously, imagine that it’s 1937 and there is no internet, no cell phones, and Amazon doesn’t exist. Apple is just a food that you eat and the idea of sending rockets to the moon is still fiction. There’s no such things as Zoom and the sharing economy has a totally different meaning. Amelia Earhart has just disappeared during her audacious endeavor and the Hindenberg has just exploded. Great Britain’s Duke of Windsor has married Wallace Simpson, the American divorcee and British citizens are aghast. Joe Louis becomes the World Heavyweight Champion-the first Black man to do this in an era of Jim Crow. Our current president, Joe Biden, won’t be born until November 20, 1942. In 1937, the IRS will create the ABC test as a way to classify independent contractors. The US was still dealing with the aftermath of the Great Depression. What does this have to do with something occurring in 2021? Well, quite a lot.
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*There are a couple of thumps against the microphone during the show. Sorry about that!*
When I say that I’m progressive, I’m Universal Basic Income Progressive. I believe in the right to organize and fight against big business and am currently supporting the workers’ in Alabama who are organizing against Amazon. Democrats and Independents H.R. Bill 842 just doesn’t make sense for the following reason. You’ve applied a 1937 litmus test to a 2021 economy.
- The ABC test for a 2021 economy is a disaster as we’ve seen from California’s experience with AB5. They’ve had to add numerous changes to that law because there were so many problems with it. The “B” in the “ABC” is the problem.
- It’s 2021 we now have seatbelt laws, Amazon, Hologram meetings, the Sharing economy, and cell phones. Rockets are being sent into space by private companies.
- Nano technology and deep fakes are real.
- So, why on earth are we apply a 1937 work application to a 2021 economy? In fact, the IRS uses the “Common Law” designation to identify independent contractor situations.
Why I Love Freelancing
I think it’s important to discuss why freelancing in its many forms is so attractive to so many American workers. I will share my personal situation. At the the end of 2014 I quite my traditional 9-5 job. It was actually a pretty good job.
- I had great benefits and by the time I left had around 5 weeks of vacation year.
- Affordable Healthcare
- 403(b) with a match
- I could go hiking or to fitness classes during my lunch hour
So, you’re probably asking yourself why does a person like that leave a professional situation such as the one that I just described that looks so awesome on paper?
Let Me Share
- I’m one of the hundreds and thousands of Black women who would prefer to go it on their own. In fact, Black women are the fastest growing group of entrepreneurs. In my case, this is why.
- Difficulty in getting promoted beyond lateral promotions
- Wage inequities and not being able to have transparent conversations about them.
- How workers are assessed by management
- Being the only POC in a work space and not being able to exist as myself without constant exhausting passive aggressive issues from colleagues. I even grew up in Boulder and Denver, Colorado and am very well-versed in being the only person in a space.
- Vacation time and general flexibility to take care of myself while navigating my professional role.
- Toxic work environments keep me from being my best self.
- Entrepreneurship has allowed me to lean into my character traits and behaviors that I got penalized for in corporate.
- Talking!
- Relationship building
- Powers of observation
- Difficulty in getting promoted beyond lateral promotions
What I Love About Freelancing
- That the word begins with “free” all of the freedom that it implies. If I wanted to work 24 hours in a row, I could. If I wanted to a nap in the middle I would. If I wanted to focus on fitness-no issue.
- I was able to build out a number of different revenue streams within my business. That allowed to focus on the skills that I felt I could share with the world.
- The ability to focus on my professional development. I’ll never forget during last year at my old job when my boss said “No” to me attending a conference that everyone in my role across the US attended. This was also after she had said “yes” to everyone else. She changed her mind the next day, but that initial “no” still stung. I never have to worry about being told “no”. I am able to constantly take care of my professional development.
- I love that I’m not in a forced paternalistic relationship with an organization that I don’t want to be a permanent employee of…because I don’t want to be an employee. It’s important to me to be able to work on a project and then MOVE ON from an organization when I’m done. I’m not trying to work on an ongoing basis for the organizations that I do contract work for.
- It’s important to me to be able to work from wherever I would like to work.
- From my hometown
- At a co-working spaces
- From the mountains
- Overseas
- Time freedom and flexibility-I don’t have to ask permission to:
- Go on vacation
- To run an errand for my mom
- To go to the doctor
- Or, rest when I’m having a migraine
- The ability to explore my intellectual and professional curiosity
What We Want
- Don’t harm the estimated 60 million people who are 1099 contractors. We’re in a tenuous position financially in the United States. Killing our businesses is a crazy thing to do regardless of what’s going on.
- Use the IRS Common Law Test vs. the “ABC” test which penalizes freelancer contractors. Or, just the A and C components of the test like numerous states current do. Please refer to this resource to see what states are doing. THEN, Google the reaction by freelancers in each state. Start with California’s AB5 situation.
- Speak to more freelancers with a special emphasis on individuals who work outside of the new gig economy. Understand the role of freelancers in facilitating the tasks in their business.
- Truckers
- Freelance writers
- Graphic designers
- Brand ambassadors
- Trades people
- Artists
- Doctors and nurses
- Increased accessibility to healthcare. I would like to say “Thank You!” for the new legislation that is capping healthcare premiums to 8% of people’s income when they purchase on the exchange.
- A Federal law mandating paid leave for families and individuals. I’m proud of my state of Colorado for voting “yes” on Proposition 118 that provides paid medical and family leave. Yes, Self-Employed individuals are allowed access to this leave as well.
Don’t discount how angry and frustrated people are feeling about the potential of using the ABC test in the ProAct. Do listen to our concerns and spend more time looking at the financial impact of this law. Entrepreneurs in California lost their businesses overnight. People left the state. What will happen if it becomes the law of the land as it’s written now?
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Honestly your reasons against the pro act around freelance are the same reasons ‘right to work’ is so important. Essentially this bill is all about forcing people to work w2 with unions. The abc part forces you to work w2. The anti right to work piece means if you work for a company that your coworkers vote to unionize you now are extorted to pay union dues or lose your job. Why can’t we just let people choose how they want to work. Ok we need to allow controls on companies from taking advantage of people. But the answer isn’t hurting free lancers and extorting money from employees to give them essentially a second boss.
Honestly, I think the argument is much simpler. Strengthen workers’ rights. Use tax code that makes sense for 2021. It’s literally not that difficult.