The Insights Association today joined a coalition letter with 21 other organizations sent to relevant leaders on the House Education & Workforce Committee, urging their prompt approval of the "Harmonization of Coverage Act" (H.R. 3825).
This legislation would reduce the patchwork of different tests currently used to define if someone is an employee or independent contractor, by harmonizing the definition of employee for purposes of federal law. H.R. 3825 would harmonize federal independent contractor laws around the "common law" test, an easier test to meet for marketing research and data analytics respondents receiving incentives for participation.
Harmonization of the term "employee" in federal statute will protect respondents receiving incentives for participation in marketing research and data analytics, and the companies conducting that research and analytics, from having to relitigate respondents' independent contractor status under different federal laws that define the term differently, while enabling the federal government to more efficiently ensure proper worker classification.
"On behalf of the Coalition to Promote Independent Entrepreneurs, a national coalition of trade associations, companies, and independent entrepreneurs that support an individual’s right to work as an independent entrepreneur, we are writing to express our strong support for H.R. 3825. The current patchwork of more than 10 different definitions for the term “employee” for purposes of federal and state statutes creates significant uncertainty for legitimate independent contractors and their clients, which impedes their ability to do business with each other. This creates an unfair playing field that discriminates against legitimate independent entrepreneurs, and stifles economic growth. Independent entrepreneurs represent a material segment of the American workforce and contribute hundreds of billions of dollars annually to the American economy. They deserve legal certainty concerning the contractual relationships they enter into with their clients. Proper worker classification is important to the economy. The ability of government agencies to ensure that individuals are classified properly would be facilitated by a harmonized definition of employee for purposes of relevant laws."
The signers urged that, "The sooner that action can be taken to harmonize this definition, the sooner our nation’s independent entrepreneurs will be liberated to compete on a level playing field and maximize their earnings. And companies will then be able to decide whether to engage legitimate independent entrepreneurs based on business needs, rather than avoiding regulatory risks. Once this occurs, the overall economy can begin to operate more efficiently and potentially grow at faster rates."