Staff - March 9, 2021

Vote On The PRO Act Imminent; PPAI Outlines Opposition In New Podcast

Staff - March 9, 2021

As reported last week, PPAI has joined with several industry coalitions, representing hundreds of trade organizations, to oppose the PRO Act. The Protecting the Right to Organize (PRO) Act, H.R. 842, makes significant changes to current labor law that will harm the promotional products industry by banning the independent contractor model. The new legislation makes a broad presumption that all workers in the U.S. are employees unless each element of a newly established “ABC” test can be demonstrated. PPAI is opposed to the PRO Act because, if signed into law, it would significantly change how thousands of promotional products companies interact with each other, and it will eliminate jobs in the industry.

The House is expected to consider H.R. 842 as early as today, with a possible vote happening this week. In the latest episode of PPAI’s PromoTalks podcast, PPAI’s D.C.-based lobbyist Cliff Andrews and PPAI’s Public Affairs Manager Maurice Norris discuss the implications of this proposed legislation on industry companies, answer some of the most commonly asked questions and explain how industry members can take action now to oppose it. The 16-minute podcast, PPB Presents: “Why The PRO Act Is Detrimental To the Promotional Products Industry,” is available free on Spotify and Apple Podcasts and at PromoTalks.

PPAI also urges industry members to click here to quickly email and call members of Congress to educate them about why independent contractors in the promotional products industry do not want to be forced to reclassify as employees.

PPB’s Associate Editor Kristina Valdez moderates this podcast sponsored by Kaeser & Blair. Cliff Andrews is principal of CapCity Advocates, LLC, a federal government relations firm that he opened in 2004. He partners with associations to deliver a wide range of policy issues management, coalition management and association advisement services. Maurice Norris is PPAI’s public affairs manager where he monitors legislative and regulatory developments affecting the promotional products industry, assists Association members with compliance challenges and helps them advocate for their companies with various levels of government. He also serves on the board of the Graphic Communications Workforce Coalition.

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Comments (8)

Eric Mohr

March 26, 2021

Calling someone "indepenent contractor is perhaps one of the most abused classifications out there. By definition, an indepenent contractor sets their own hours and location. Companies abuse this by requring their "independent contractor" to sit at a desk with proscribed set hours, but don't classify them them as an employee. That by definition IS an employee. Calling the former an "independent contractor" (when in fact they are an employee) is nothing more than the company avoiding the added benefits an employee would deserve (i.e. vacation, hospitalization, the employer's share of SSI and Medicare etc). Companies that do not restrict a worker from setting their own hours and location have nothing to concern themselves with this or any other law that reins in this rampant abuse. It is high time Congress corrects this abuse in this so called "gig economy". Everything out there can't be a "gig" when you work 40 hours a week in an office with set hours.

Neva (2)

March 12, 2021

The bill won't pass the Senate. The Republicans don't want to vote for it and it would take at least 10 Republican votes to get it to pass. Ha, now what are the odds?

Neva (1)

March 12, 2021

my last comment..................not "employees".....that should be...forbid them from working with other promo biz's

Neva

March 12, 2021

If a self employed contractor can only work for the one company they contract with, then shouldn't that contractor be considered an employee? And what promo biz would want their contractor doing business with other promo biz's? I've been on both sides of the fence, as a promo biz owner then later a contractor. As a biz owner, you can't "hold hostage" a contractor and forbid them from working with other employees. If you want to do that, then make him/her an employee. It's only fair.

Gina Andrie

March 12, 2021

We oppose PRO ACT HR 842. For 42 years the independent contractor model has worked for our 2nd generation business...For salespersons it provides the best incentives to build their client base with the best commissions. Furthermore, it provides a platform where salespersons do what they do best: SELL. Distributor houses are needed for administrative duties that keep a salesperson away from selling. It is a mutually beneficial relationship and the government needs to stay out of the promotional products industry, the sales industry and the de-incentivizing of professional salespersons.

STEVE LATHAM

March 12, 2021

Unfortunately Again, our government has over-reached into the private sector. I wonder at this point what Multi-line will Reps do not just independent sales reps. I think we need to kick both parties out and re-boot our government.

Bruce Schermerhorn

March 11, 2021

I have listened and read this information but it does not explain what will happen to who. I presume it would force distributors the make their commission only reps employees and pay salaries, health insurance etc. or if the business they manage does justify that lay them go. But can't the sales rep become his own business and rely on his previous previous non employer for support? Then he could retain customers business and work as much as they want or can like they do now.

sandy & john Libby

March 9, 2021

We oppose (PRO) Act, H.R. 842, Sandy & John Libby