Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Sweeping Labor Bill Would Limit Independent Contractor Use Nationwide

Business and trucking interests are criticizing a union-backed labor bill passed by the U.S. House of Representatives. Among other things, the bill would rewrite how independent contractors are defined along the same lines as the controversial new AB5 law in California, which would upend trucking’s longstanding use of owner-operators.

Deborah Lockridge
Deborah LockridgeEditor and Associate Publisher
Read Deborah's Posts
February 7, 2020
Sweeping Labor Bill Would Limit Independent Contractor Use Nationwide

The House of Representatives passed sweeping union-backed legislation that is being criticized by business interests.

4 min to read


Business and trucking interests are criticizing a union-backed labor bill passed by the U.S. House of Representatives. Among other things, the bill would rewrite how independent contractors are defined along the same lines as the controversial new AB5 law in California, which would upend trucking’s longstanding use of owner-operators.

Critics have called the Protecting the Right to Organize (PRO) Act, HR 2474, a union wish-list.

Ad Loading...

Perhaps of most concern to trucking is that its language mirrors that of California’s Assembly Bill 5, which set up an ABC test requiring workers to be considered employees rather than independent contractors unless they met all three prongs of the test. The B prong of that test is regarded as extremely problematic for traditional trucking owner-operator arrangements, as it prohibits companies from using independent contractors unless the worker was performing work “outside the usual course of the hiring entity’s business.”

As employees, such workers could organize and join unions. Independent contractors are prohibited by federal law from organizing.

AB5, which went into effect in California Jan. 1, is under a court preliminary injunction from being enforced against the trucking industry while a California Trucking Association lawsuit is adjudicated. The CTA argued that AB5 is pre-empted by federal law.

Ad Loading...

In a statement praising the PRO Act, Teamsters General President Jim Hoffa said, "The PRO Act will strengthen the NLRA so that workers seeking to organize a union and negotiate higher wages and better benefits will be protected…. The misclassification of workers is on the rise and too many working Americans are falling through the cracks. The Teamsters have witnessed such behavior firsthand as XPO workers across the country try to organize with this union. I'm glad to see a majority of the House are standing with workers by allowing them to join together to negotiate on the job."

Critics, however, say in addition to the independent contractor issue, the PRO Act would, among other things:

  • Effectively nullify state “right-to-work” laws opposed by unions. Currently, 27 states have these laws, which say private-sector employees can’t be forced to join a union as a condition of employment. (Critics of such laws call them “right-to-work-for-less” laws.)

  • Mandate employer recognition of a union if a majority of employees sign pledge cards. Critics of these so-called “card check campaigns” charge that union organizers often engage in high-pressure tactics to get workers to sign.

  • Ban employment arbitration agreements.

  • Authorize “secondary boycotts” by unions of targeted employers.

The U.S. Chamber of Commerce contends that the PRO Act “radically rewrites American labor policy” and that it “would deliberately eliminate basic rights for employers, such as the fundamental right to have standing in representation cases before the National Labor Relations Board.

“The PRO Act would apply nationwide the problematic definition of independent contractors recently enacted by California in a statute known as AB-5," the Chamber said in a letter to representatives. "That statute has made the legitimate use of independent contractors extremely difficult in the state. It is causing significant challenges for a host of businesses and has already resulted in job losses. It makes little sense to impose this restrictive definition on the rest of the country.”

Ad Loading...

The International Foodservice Distributors Association also issued a release criticizing the bill.

“The PRO Act is a gift to union special interests at the expense of the American worker and business owner," said IFDA CEO Mark Allen. "This legislation would drastically reduce employee privacy and choice and radically remake the nation’s employment landscape. It would give unions free reign to use threats and coercion to force both employers and employees to bend to their wishes through imperiling secret ballot elections and prohibiting state right to work laws, protections that have been in place for decades. 

"These types of radical changes would put the foodservice distribution industry and our nation’s overall economy at significant risk. The PRO Act is a truly bad idea, and we are disappointed that a majority of the House voted to support these types of policies.”

It’s unlikely that the bill will make it through the Republican-controlled Senate, and there’s a threat by President Trump to veto it if it does. The administration released a statement noting that the bill “appears to cut and paste the core provisions of California’s controversial AB 5, which severely restricts self-employment. AB 5 is actively threatening the existence of both the franchise business sector and the gig economy in California. It would be a serious mistake for Congress to impose this flawed job-killing policy on the entire country.”

But Bloomberg Law notes that the sweeping House legislation tees up the issue as something that will play into fall elections.

Ad Loading...

Sen. Bernie Sanders (I-Vt.), a top candidate in the 2020 Democratic presidential primary race, in a tweet called the vote "an important step in leveling the playing field for working people."

More Drivers

Two black men in safety vests walking together laughing in a truck fleet yard
Driversby Deborah LockridgeJuly 6, 2026

What the Best Fleets to Drive For Teach About Driver Retention

Survey fatigue, AI-powered routing, owner-operator expectations, and the decline of social media all emerged as themes from this year's Best Fleets to Drive For program.

Read More →
Podcast thumbnail showing Jane Jazrawy, the words "When Drivers Tune Out," and a line drawing of a truck.
DriversJuly 2, 2026

Driver Retention Lessons From the Best Fleets to Drive For

What separates trucking's best workplaces from the rest? Jane Jazrawy shares the biggest lessons from this year's Best Fleets to Drive For program on driver retention, communication, AI, and workforce trends on the HDT Talks Trucking podcast.

Read More →
Man standing beside tractor-trailer in sepia tone with the words "Farewell CDL" superimposed on top
Driversby Jack RobertsJuly 1, 2026

Farewell, CDL: Why I'm Giving Up My Commercial Driver's License

After more than 20 years as a CDL holder, HDT Executive Editor Jack Roberts is letting his commercial license expire. Not because he wants to — but because trucking's nuclear verdict crisis has made the risks of public-road test drives too great for editors, manufacturers, and everyone involved.

Read More →
Ad Loading...
HDT Talks Trucking thumbnail with photo of Jane Jazrawy and the text,, "When Drivers Tune Out"
Driversby Deborah LockridgeJune 24, 2026

How Top Trucking Fleets Improve Driver Retention [Video]

What do healthy snacks, optimized routing, and just picking up the phone have in common? They're all strategies the Best Fleets to Drive For are using to retain truck drivers.

Read More →
Trucker Path Cargo Net theft overlay.
Driversby News/Media ReleaseJune 23, 2026

Trucker Path Adds Verisk CargoNet Theft Data to Navigation Platform

Trucker Path’s new cargo theft risk overlays give drivers and fleets visibility into high-risk areas, stolen commodity trends, and theft hotspots.

Read More →
Man seated in front of computer with inset of insights generated for a truck driver

Netradyne Intelligence Uses New AI Agents to Automate Response to In-Cab Camera Data

The company called the next-generation in-cab camera safety platform "a fundamental shift from systems that report on what happened to systems that actively drive what should happen next."

Read More →
Ad Loading...
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Artist rendering of dealership with trucks and trailers parked outside
Equipmentby News/Media ReleaseJune 2, 2026

Prime Inc. to Open $7.9M Flagship Used-Truck Dealership

A new driver-focused facility to sell Prime Inc's used trucks and trailers will be the first purpose-built location in the company's history.

Read More →
Thumbnail for podcast episode
Safety & ComplianceMay 28, 2026

Short Takes: Inside K&B’s Truck Safety Tech

Listen to learn how K&B Transportation uses cellphone-blocking technology, speed management systems, weather geofencing, bridge avoidance tools, and more to improve driver safety.

Read More →
Ad Loading...
Nussbaum driver pay.
Driversby News/Media ReleaseMay 27, 2026

Nussbaum Expands Driver Compensation with Pay Raises, Profit Sharing

Nussbaum Transportation said its latest compensation package could push first-year driver earnings above $90,000 in key hiring markets.

Read More →