Pennsylvania Faces Subcontractor Extinction Act
The Pensylvania House of Representatives is now considering HB 400, a piece of legislation which critics have nicknamed the "Subcontractor Extinction Act." The bill has been kicking around Harrisburg since last spring, finally clearing the the Senate Appropriations Committee last week. On the same day, it was sent to the House Rules committee.
HB 400 is an attempt to prop up Pennsylvania's bankrupt unemployment fund by requiring many employers who hire independent contractors to pay unemployment compensation taxes and workers' compensation insurance. If passed, this bill will put a strain on the entire contracting industry, raising taxes and killing jobs. HB 400 is being slammed by institutions like the Pennsylvania National Federation of Independent Businesses (NFIB) and the Pennsylvania Builders Association as being the product of special interests and labor unions intent on restricting non-unionized labor.
It's sad that the bill being proposed to pay for the state unemployment fund will end up causing more unemployment. Let's hope that Pennsylvania legislators have the guts to buck the unions and pass some laws that will limit spending and really free up jobs.