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Senate to Consider PRO Act

How Would it Affect Your Store?

In March, The "Protecting the Right to Organize Act" (PRO Act), passed the US House of Representatives and was sent on to the Senate. The National Retail Federation (NRF) has called it the "worst bill in Congress." A recent article took a look at four ways your store could be hurt by this legislation if it becomes law.

Businesses across the country have been asking how the PRO Act would affect them. NRF outlines four specific ways.

Secondary Boycotts: Although currently illegal, PRO would allow secondary boycotts, which means if you carry products by a brand that a union is trying to organize, your store could be picketed. "If one of the brands I sell at my store ends up in a dispute with a labor union, passage of this bill would allow that union to come to Rehoboth to boycott and picket my store simply for selling merchandise from that brand," says Trey Kraus, owner of Carlton's Men's and Women's Apparel in Rehoboth Beach, Delaware.

Eliminates Independent Contractors: The PRO Act would codify California's "ABC test" for classifying workers as employees or independent contractors, effectively prohibiting small business from contracting with freelancers. Many small businesses rely on independent contractors to perform functions needed occasionally, like advertising and website design, bookkeeping, cleaning services and more. Under PRO, these services would have to be provided by full-time, unionized employees.

Overturns Laws of a Majority of States: More than half of US states, 27 to be exact, have "right-to-work" laws which allow employees to choose whether to join a union without risking their jobs. The PRO Act would override the will of voters in those states, taking away the freedom of employees and forcing them to pay union dues. "Living in a right-to-work state signifies what it means to my wife and I to pursue the American Dream," says John Morman, owner of Celtic Tides specialty store in Virginia. "The PRO Act threatens all of that. It means the removal of personal choice in our employment practices, unprecedented interference with our ability to run our own business and several other clauses that would lead us to inevitably closing our doors and the loss of jobs."

Increased Regulatory and Paperwork Burden: The PRO Act contains more than 30 provisions which force businesses to comply with numerous new federal regulations. NFR states one particularly concerning provision is the so-called "persuader rule," which would make it harder for small businesses to secure legal advice on complex labor law matters. PRO would require small business to file significant paperwork to the federal government to request advice on a labor matter.

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