It’s time to chart a middle path for independent workers

The United States is currently experiencing a historically tight labor market with millions of open employment opportunities across the economy. There are simply more jobs — within retail, manufacturing, logistics, and more — than those interested in engaging in traditional work relationships whereby workers are tied to a version of a 40-hour work week with set benefits. Independent work, on the other hand, has never been more popular. At a time when workers of all types have maximum choice to choose the various conditions of their working relationship, many are choosing independent work relationships.  

Why is that? Here’s what we know. We know from poll after poll that most individuals who engage with independent work do so of their own free-will and are satisfied with this work relationship. We know that many independent workers see the opportunity to build their own business as their life’s work, and as a pathway for these entrepreneurs to build businesses that span generations. We also know that some individuals are seeking out quick gigs to earn maximum cash between other activities like school or caregiving to combat the historic inflationary environment and/or to obtain a temporary influx of cash in their households.  

Whatever their reason for seeking independent work, the U.S. should embrace policies that support these individuals and their choices. Unfortunately, the opposite approach is too often taken. 

Legislation like AB-5 in California is a great example of a policy that is hindering the ability of individuals from participating in a rapidly modernizing economy where flexibility is being offered. This law seeks to classify most, if not all, workers as employees regardless of their stated desires. And everyone has witnessed the tumult and negativity surrounding the bill since its inception. There have been over 100 exemptions from AB-5, a successful Prop 22 campaign which saw voters reject the law by a nearly 2-to-1 margin, and recent protest from truckers who are angry about what this new employment classification means for their livelihoods. AB-5 was a policy haphazardly pushed by a narrow group of special interests with little regard for its full impact on the very stakeholders they sought to protect.  

Fortunately, there is a better way forward: the Worker Flexibility and Choice Act (WFCA). Recently, Reps. Henry Cuellar (D-Texas), Elise Stefanik (R-N.Y.), and Michelle Steel (R-Calif.) introduced the WFCA, a first-of-its-kind, bipartisan approach to protecting individuals’ ability to opt-in to the employment relationships that work best for them, whether that be as independent contractors, freelancers, and gig workers. Their approach charts a middle path between the status quo, which limits support and protections for independent workers, and radical efforts like AB5 and the PRO Act, which politicizes workers’ preferences. 

Specifically, WFCA guarantees individuals’ right to accept and reject work opportunities and pursue opportunities with multiple entities, while at the same time ensuring a knowing and voluntary work relationship is forged with other business entities. And importantly, the WFCA creates pathways for independent workers to receive non-traditional benefits as non-employees from entities with which they contract. 

Some opponents of the WFCA take the misguided position that all workers want and should be traditional employees, which leads to poor policy proposals like AB-5. Rather than pushing schemes supported by a narrow group of interests, policymakers should be thinking proactively about how to best support and enhance the modern work experience of millions of independent workers.  

The Coalition for Workforce Innovation supports the WFCA and commends the bipartisan work of Cuellar, Stefanik, and Steel. All lawmakers should take a close look and see what the bill seeks to achieve — a modern approach that helps workers do what they want while providing greater protections than what currently exists under the law. 

Camille Olson is counsel for the Coalition for Workforce Innovation, a coalition of technology companies, worker advocates, retail, logistics, and service industries advocating for modernized workforce policies in the U.S. She is also a Partner at Seyfarth. Evan Armstrong is the chair of the Coalition for Workforce Innovation and vice president of Workforce at the Retail Industry Leaders Association (RILA).