If the PRO Act became law, all 2.7 million union-represented workers in right-to-work states would immediately be forced to pay union dues or lose their jobs. Workers not currently paying would be compelled to pay. Workers voluntarily paying would lose the option to opt-out if they believed their union stopped representing them effectively.
Workers who currently choose not to join a union save between $500 and $1,000 a year, which is the typical cost of annual union dues, sometimes even higher.
Additionally, 61 million workers in right-to-work states have jobs in industries covered by the federal law which protects this choice to pay a union or not. If the PRO Act passes, these workers could be forced to pay union dues if their workplace is unionized.
Assembly Bill (AB) 5 in California has had devastating effects on independent contractors and freelancers in the Golden State. AB5 replaces the common law test with the ABC test to determine whether a worker is an employee or independent contractor.
These are real stories of Californians whose lives and livelihoods have been turned upside down by the new classification which would be the same nationally if the PRO Act becomes law.
The PRO Act will increase the membership of unions in the private sector and increase the number of individuals who must financially support them.
S. Department of Labor (DOL) data show that unions under their jurisdiction already receive over $11 billion per year in dues and fees.
If these unions can increase their membership to the level that existed in 1983 (16.8 percent, up from 6.3 percent today), the dues they receive could, under a conservative estimate, exceed $20 billion per year.
This would give unions additional resources to use on things like political activities and lobbying, potentially allowing them to spend $3 billion per two-year election cycle in this category.
Assembly Bill (AB) 5 was signed into law in California at the beginning of 2020. Since then, the law has had devastating effects on independent contractors and freelancers in the Golden State- especially on women entrepreneurs who have always valued the ability to set their own schedules in order to improve work-life balance.
Instead of learning from California’s mistake, lawmakers in Washington, DC are doubling down on the state’s attacks on freelancing and entrepreneurship.
In the webinar recording (which was originally hosted live by the Institute for the American Worker and the Independent Women’s Forum on October 20, 2020), you will hear stories from real women impacted by AB5