(The Center Square) – Michigan’s top small business advocacy group is fighting legislation that it says could all but end independent contractors in the state.
Hairstylists, truck drivers, gig workers, ride-share drivers and grocery delivery drivers all fall under regulations proposed in two Senate bills working their way through hearings.
According to the National Federation of Independent Business, the versions of Senate Bills 6 and 7 follow a California law and would nearly eliminate the use of contractors by creating a more stringent test of employment or independence.
“Given the economic stresses facing Michigan small businesses, introducing bills that would essentially eliminate independent contractors and threaten employers with massive fine increases and the threat of jail time and felonies seems rather tone-deaf,” said Amanda Fisher, NFIB Michigan state director.
Fisher said bill sponsors have indicated they are working toward substitutes for the legislation that would ease the proposed restriction, but none have been introduced yet.
The issues, according to Fisher, are as simple as dealing with hair stylists. The current forms of the bills would not allow a hair salon owner to employ an independent contractor to cut hair, even though that is what often happens.
“After California passed a similar law, they have had to add at least 109 exemptions due to the unintended and unwanted consequences of making it nearly impossible for anyone to be an independent contractor. Why would we want to do that in Michigan?” Fisher said.
SB6 also includes a provision to block employers from knowing anyone who has filed a complaint against them. That would leave many in the dark when having to defend themselves, Fisher said.
“Many small business owners serve in multiple roles in the business, including HR, and may make unknowing mistakes,” Fisher said. “These bills would expose them to massive fines that could include jail time. At a time when policymakers want to limit time spent incarcerated for violent offenders, these sanctions are disproportionate at best and, at worst, offensive.”
