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Senate labor committee adopts substitute to alter independent-contractor standard, retains ABC test for construction
Summary
The Michigan Senate Committee on Labor voted 3-1 to adopt an S-1 substitute to Senate Bill 6 that keeps the ABC test for the construction industry and codifies an "economic realities" test for other sectors; the committee also voted to report the bill to the Senate floor with a favorable recommendation.
The Michigan Senate Committee on Labor voted 3-1 on May 1 to adopt an S-1 substitute to Senate Bill 6 that changes the state's definition of "independent contractor," keeping the ABC test for workers in the construction industry while codifying an economic realities test for workers in other sectors, Chairman Cherry said.
The substitute was adopted on a roll call after Senator Kavanaugh moved to adopt the S-1 substitute. Chairman Cherry, Senator Camilleri and Senator Kavanaugh voted yes; Senator Albert voted no. The committee then voted 3-1 to report SB 6 as substituted to the Senate floor with a recommendation that the bill pass.
Chairman Cherry gave a brief explanation on the substitute, saying it "alters the definition of independent contractor" from the bill as introduced and preserves the ABC test for those in construction while applying the economic realities test outside construction. The transcript records no additional debate on the floor of the committee beyond the clerk's reading of submitted position letters.
The clerk read position letters and witness cards on the bills into the record. Those recorded as opposing SB 6 included Wendy Black (Michigan Chamber), Amanda Fisher (NFIB), Shane Hernandez (ABC Michigan), Jacob Manning (Small Business Association) and Brian Shoaf (Detroit Regional Chamber); Jackie Dolce of the Grand Rapids Chamber was also listed as opposing. Eli Isaguirre of the Michigan Regional Council of Carpenters and Millwrights was listed as supporting SB 6. Christine Suave of the Michigan Immigrant Rights Center was recorded as opposing SB 6. Dyke Van Covering, Insurance Alliance of Michigan, was recorded as opposing.
Formal actions taken in the committee were the adoption of the S-1 substitute and the committee's report sending SB 6 as substituted to the full Senate with a recommendation to pass. No statutory citations or additional legislative text were read into the record during the committee's on-the-record explanation in the provided transcript.
The bill will next appear on the Senate calendar for further consideration by the full Senate.
