HR 842 in the 117th Congress Impact

The PRO Act has been introduced again and probably will pass this time. If any reason why stories of a former employer suddenly trying to exit the US in panic, this could be it. While I do “service work” for other companies that sell my service as if I was one of their employees as a way to earn a living, this is about to change. HR 842 makes that IRS “common law employee” idea that much more strict. You can’t hire subcontractors to do the same work your regular employees do anymore. You have to hire them directly.

While this may make Uber a thing of the past – because Uber will need to hire drivers as full W-2 employees – it also impacts my business. It also may make UpWork and Subcontractor software companies a thing of the past as well.

For me and Electrifying Ideas, LLC it means no more “service work”. No more video recording. No custom software. No on-site repair work. (unless I am hired as a full W-2 employee for that job.)

Just a note about full W-2 employees… It is very hard to get those jobs because the full HR Interview process is required. And leaving those jobs is just as involved. So they tend to not get the work done that they otherwise would have done.

The change in Labor Laws would make Electrifying Ideas, LLC strictly a “Product Company”.

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