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Replace ABC test

By Peter Lambert - Nashua | Sep 25, 2021

It has come to my attention that Congress is working on a couple of bills that would drastically impact those of us who make a living working as independent contractors. One is Senator Ron Wyden’s unemployment insurance reform bill, which includes a provision that would enact the ABC worker classification test at the federal level.

The ABC test is far too strict and unforgiving a measure to be implemented in any widespread manner, just look at what happened in California when they tried implement that same test at the state level. Immediately after passage, thousands of independent contractors found themselves out of work. Once the ABC test was passed, companies were no longer allowed to hire outside contractors who performed similar work – instead, they would have to be hired as direct employees of that company.

This is a major problem for the thousands of self-employed individuals in New Hampshire who happily choose to work as independent contractors. While I don’t doubt the well-meaning intentions behind these bills, the inclusion of the ABC provision will overshadow all the good Congress is trying to do and hurt far too many people. Congress needs to replace the ABC test with a fairer worker classification standard that works for everyone.