Tuesday’s Pennsylvania Independent article on the new state independent contract rules demonstrates the clear need for regulatory streamlining in the commonwealth. After Deborah Webster’s husband lost his job, she started cleaning buildings part-time as a contractor. She kept her cleaning job after her husband found new work, in part to help subsidize her son’s private education. But when state lawmakers passed HB 400, nicknamed the Subcontractor Extinction Act last year, she quickly learned she could no longer earn a living that way.
As CF reported last year, the new union-backed law makes it difficult for companies to hire independent contractors, a goal of construction union bosses. While the law was intended to affect only the construction industry, it has, as predicted, spilled over into other contracting fields. Webster realized she couldn’t afford to comply with the new law, which mandates the purchase of liability insurance.
Pennsylvania lawmakers should look to reduce mandates—such as HB 400—that inhibit economic growth, and repeal costly regulations that only benefit special interests. Check out CF’s report Streamlining State Government to learn more.