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Michigan's Largest Employer Groups Oppose Legislature's Threat to Self-Employment

Two Bills Impose Heavy Penalties on Every Buyer of Independent Services

Late in October 2023, Michigan's Career Freedom Coalition issued an emphatic pro-workplace freedom letter to the state's legislature.

The Coalition, consisting of 43 of Michigan's largest employer associations, stated it strongly opposes the insertion of the "ABC test" into state labor law and the imposition of much harsher penalties on buyers who use independent contractors.

Pointing specifically to Michigan's HB 4390 and HB 4391, the Coalition compared the twin Michigan bills to California's disastrous AB5, making six critical points including:

-- the legislation's presumption of employer guilt,

-- imposition of steep new penalties for buyers including prison time, and

-- bounty hunting specifically enabled by the bills.

Independent contracting is the natural economic solution for meeting peak, emergency, and overflow business demand, and for accessing specialists in all fields. New Jobs America counts over 600 work occupations that can be conducted readily by independent contracting. Eliminating independent contracting most harms women, workers needing flexible schedules, rural residents, skilled professionals, retirees, and the disabled.

The Coalition relied in part on New Jobs America's analysis of the greatly expanded penalties imposed by the bills, summarized here in a tweet.

Download a copy of the Coalition's two-page letter below and click here to visit the Coalition's website.

Download PDF • 185KB


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