Employment Status of Independent Agents Threatened

PRO Act would upend the employment classification of independent agents.
March 31, 2021

Earlier this month, the U.S. House passed H.R. 842, the Protecting the Right to Organize (PRO) Act, mostly along party lines, as expected. The PRO Act’s intention is to reform current labor law in a variety of areas. For PIA members, the bill’s most significant provision would amend the National Labor Relations Act (29 U.S.C. 152(3)) by expanding the definition of “independent contractor” by replacing the existing definition with an “ABC” test to define an “employee.”

Passage of the ABC test set forth in the PRO Act would upend the employment classification of independent agents and, by imposing federal law on our state-based insurance regulatory system, threaten the very existence of that system. The bill is now awaiting action in the Senate, where it would require 60 votes to pass. At the same time, PIA is working with our allies to add a carveout exempting independent agents from the ABC test if and when the bill is considered in the Senate. -more-

PIA ACTION ALERT: PIA has issued an action alert, which can be found here, to enable you to easily ask your Senators to oppose the PRO Act unless a strong exemption for insurance agents is added to the ABC classification test.

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