Resolution in Support of Independent Contracting

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Model Bill Info
Bill Title Resolution in Support of Independent Contracting
Date Introduced December 3, 2020
Date Finalized January 8, 2021
Type Model Resolution
Status Final
Task Forces Commerce, Insurance and Economic Development

Resolution in Support of Independent Contracting

It is resolved that the state of [insert state] is strongly committed to entrepreneurship, the freedom of contract, and opportunity for all Americans to pursue work that fits their lifestyle. Flexible work arrangements advanced through independent contracting and other forms of self-employment provide the best economic opportunity for tens of millions of Americans. In order to meet the needs of all workers, job creators, and entrepreneurs in the 21st century, government policies must maximize rather than eliminate this flexibility.

WHEREAS, independent contractors, entrepreneurs, gig economy workers, and freelancers (ICs) fill critical roles in the economy including in transportation, delivery, medical, construction, financial, tourism, hospitality, caregiving, journalism, sales, entertainment, IT, and other industries with potential for significant growth if policymakers embrace this dynamic employment path. [State] supports the principles of contract freedom, fairness, and adaptability, which will help ensure a rise in rewarding career paths and new small businesses powered by ICs.

WHEREAS, individual choice is honored through contract freedom. When work arrangements are formed in voluntary fashion absent government interference, ICs and their clients are able to create flexible work arrangements that better meet the needs of everyone. Government ABC and other litmus tests that put people in mandatory employment categories eliminate many potential career paths and working relationships that maximize opportunity and innovation. Furthermore, contract freedom allows for the autonomy and ownership that many ICs seek, including the freedom to negotiate for and retain their intellectual property.

WHEREAS, policies based on fairness will end arbitrary, unfair employment designations that force both ICs and businesses to make harmful tradeoffs on which employment paths are utilized. Over time, government policies have led to barriers between workers and the types of benefits and work arrangements they desire. ICs designated as employees lack much of the flexibility afforded to the self-employed, often losing income, schedule flexibility, and autonomy through workplace requirements governments place on employers. On the other hand, ICs face government barriers in receiving benefits such as health care, training, equipment, and retirement benefits that many businesses would voluntary provide if allowed to, or that ICs could more easily secure with health and tax policies that gave them equal treatment under law.

WHEREAS, as new technology continues to change our daily lives and the type of jobs in demand, employment policies embracing adaptability will help society adjust. Many clients will benefit from utilizing the expertise of ICs to help them adapt to disruptions caused by new technologies, market shifts, and even unpredictable crises such as health pandemics. Furthermore, ICs will benefit from new market innovations such as utilizing digital marketplace companies that help connect customers to their sought-after independent services that are more difficult to find than larger companies.

Be it hereby declared that the state of [state] resolves: To advance a broader vision of independent work and economic opportunity that goes beyond the current paradigm of long standing federal and state government employment standards, we support reforms of the current processes to increase flexibility, self-determination, and certainty in government employment categorization, including respecting the choice of independent contractors, entrepreneurs, gig economy workers, freelancers, and businesses to utilize independent contracting; providing businesses more flexibility to offer ICs voluntary benefits; putting ICs on a more equal playing field in pursuing benefits outside of traditional employment models; and allowing ICs to utilize innovative resources such as digital marketplace companies to grow their businesses without their independence being taken away.

Be it further resolved: That [state] opposes any effort either at a state or federal level to limit workplace choice, employment flexibility, or to impede innovation of job creators, businesses, independent contractors, entrepreneurs, gig economy workers, and freelancers.