Labor reform: 5 things you should know
America thrives when people are free to think, speak, and be themselves.
Whether you’re working a 9-to-5 job in a big company, freelancing in a creative field, as an independent contractor in construction, or starting your own business, you should be free to pursue your career on your terms.
But right now, government regulations are making that harder. There’s a lot of red tape out there tying us down, making it tough to work where and how we want. Instead of helping us, the government is often getting in the way.
This is where labor reform comes in. It could have a huge impact on millions of lives, and it’s something we all need to know about.
Here are five things you should know about labor reform:
1) Nearly 1 in 4 Americans are independent workers
Nearly 36% of working Americans identified as independent workers, up from 27% in 2016-17. That’s over 64 million people — more than the populations of Texas and Florida combined.
These independent workers include gig workers, freelancers, delivery drivers, substitute teachers, temps, actors, writers, and countless more jobs.
And they’re not just working for themselves — they’re also creating jobs for others. In 2020, self-employed workers had nearly 31 million employees on their payrolls, according to the Pew Research Center.
2) Independent workers love their freedom
Most independent workers wouldn’t trade their freedom for a traditional job.
- 80% of independent contractors prefer self-employment over5 traditional employment.
- 65% of self-employed Americans feel fulfilled by their work, compared to 47% of those in traditional jobs.
The autonomy and flexibility of independent work are big reasons for this. People really value being able to decide when and where they work.
3) Government regulations are restricting your freedom to work
Federal and state regulations are making it harder for Americans to work independently. Many of these laws are trying to reclassify independent contractors as full-time employees, which comes with many rules that take away the perks of being your own boss.
A prime example of a restrictive labor policy is the ABC Test, which many states use to define if a worker is a contractor or an employee. In a nutshell, this policy assumes all workers are traditional employees, forcing workers to meet very strict criteria to classify as independent contractors.
These tests are a bad deal for worker freedom.
It traps workers looking for independent work into traditional employment arrangements they don’t want.
4) Occupational licensing: a hurdle for millions of American workers
Plenty of other regulations keep people from reaching their full potential. Many jobs require a government-issued license just to get started.
And we’re not talking about a few niche careers.1 in 5 Americans need a government occupational license to do their jobs. Whether you’re a real estate agent, commercial fisherman, or teacher’s assistant, you need the government’s permission to work.
These licenses are not free, either. They’ve cost the economy 1.8 million jobs and billions of dollars each year.
Excessive licensing harms our economy, limits workers, and adds little to no quality to the services it regulates.
5) Here’s how we’re fighting to free American workers
Americans for Prosperity isn’t just sitting back while the government builds more barriers. We’re pushing for policies that give every American the freedom and autonomy to find the right job for them by:
- Fighting to get rid of unfair ABC tests that force people into traditional jobs when they’d rather work independently. In West Virginia and Utah AFP has been instrumental in successfully pushing to repeal ABC tests.
- Working hand in hand with thousands of activists on the ground to encourage their state lawmakers to remove excessive barriers that keep millions of Americans from succeeding. Already 26 states have some type of “universal recognition” laws, where states accept certifications and permits across states.
- In states like Utah, AFP is supporting policies that allow independent workers to access benefits without giving up the freedom and flexibility they value.
Americans should be free to work their way to success, and the best thing the government can do is step aside.
