News | 02.11.20
House Bill Passes Requiring IBD Reps, Brokers to Become Employees
The House of Representatives has passed the Protecting the Right to Organize (PRO) Act, which would require every independent contractor—including independent registered representatives and securities and insurance brokers—to be classified as employees. The bill cleared the House largely along party lines Thursday. The bill was introduced in May by Bobby Scott (D-Va.), chairman of the House Committee on Education and Labor. While the GOP-led Senate is unlikely to take up the legislation, financial services lobbyists aren’t taking any chances. Financial services executives said in a letter to Speaker of the House Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.) that the bill would change the definition of 'independent contractor' in a way that would disrupt the independent financial services industry and consumers.
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