Hey!

 

If you follow me on Twitter, you might’ve heard me say something about how employers like Uber and DoorDash and even some media companies are in a class of their own — business models that significantly minimize commitment to employees by contracting out their revenue-generating activities.

 

Personally, I don’t think those kinds of businesses should be allowed to continue operating the way there are…externalizing as much risk as possible off to the people who make their business what it is.

 

There are times when it makes sense — for example when objectivity is an ethical imperative (journalism) or a business benefit (consulting). But a lot of these companies have been taking advantage. In that sense, I support the PRO (Protecting the Right to Organize) Act and similar legislation.

 

But in this case it falls apart in its execution, using the same flawed ABC test that California’s AB5 rested on.  

 

I’ve heard from freelancers with clients in California, saying that they’ve suffered massive blows to their income and have been pushed to shift to W2 status after AB5 was passed. I expect the same to happen if the PRO Act passes the Senate.

 

With so much attention over labor abuses from companies like Amazon and stresses from a global pandemic, people want to see “action” and few are concerned about results — like the impact on freelancers.

 

But what matters to you today is what you can do.

 

Personally, I’ll share that across AB5 and the PRO Act I’ve seen little to no impact to my work, even with multiple clients based in California. I think it’s mostly because, with few exceptions, I don’t do work that’s central to my clients’ businesses.

 

But the thing about this kind of legislation is that it isn’t just about the law. It’s also about perception and some companies will want to avoid issues whether the law is breathing down their necks or not.

 

I expect to us to see a range of reactions, falling along lines by industry and business type.

 

For now, the biggest suggestion I have (beside keeping up with the laws and contacting your legislators) is rethinking how you balance your client makeup — not basing a significant portion of your freelance work on companies where you’re providing their core business.

 

For me, even though I haven’t seen any impact yet, that means accepting that my platform-based writing work may be in jeopardy very soon (here’s Contently’s thoughts on everything for reference.)

 

I don’t see this as any reason to give up on freelancing…not at all. But I do think it’s just another one of those situations where even our micro-businesses have to adjust to changes in the world. Just like it always has, freelancing will survive and even thrive, it will likely just look a little different on the other side.

 

Want to talk about the PRO Act’s impact on your freelance business? Come by the community boards.

 

 

 

Megan