How the BIG BEAUTIFUL BILL could wipe out 1099 logistics work and what you can do about it

There’s a bill making its way through Congress with a pretty name but some ugly consequences for the logistics world.

It’s called the PRO Act, nicknamed the Big Beautiful Bill, and if you’re a cargo van owner, box truck driver, or final-mile courier, you need to understand how this could completely reshape how you do business.

The PRO Act is being pushed as a pro-worker bill that helps people unionize and strengthens labor protections.

But hidden in the fine print? A dangerous redefinition of what it means to be a 1099 contractor.

If passed, the PRO Act would use something called the ABC Test to determine who really qualifies as an independent contractor. If you fail just one part of the test, you could be reclassified as an employee, even if you run your own business.

This hits the logistics industry harder than most.

Most people in the logistics game operate as independent contractors. We pay for our trucks, cover our own insurance, and decide which loads to take. But under the PRO Act, here’s what could happen:

• You get reclassified as an employee because you’re delivering freight, the same type of work as the company hiring you.
• Platforms like WARP, FRAYT, and Dispatch are forced to cut ties with 1099 drivers altogether.
• Companies start limiting load access, tightening control, or refusing to work with solo operators.

Sound familiar? That’s because California did this already with AB5, and a lot of owner-operators had to shut down or leave the state.

This bill could change the way we normally operate. This isn’t just theory if you:

• Work under someone else’s DOT
• Use apps for load access
• Run dedicated final-mile routes
• Only contract with one or two carriers

…you’re a prime target for reclassification.

The PRO Act doesn’t care if you want to stay independent. If you look too much like an employee on paper, they’ll label you one, and that label brings a whole lot of legal and tax baggage for everyone involved.

Here’s how to stay ahead of this:

1. Incorporate your business. An LLC or S Corp makes it easier to show you’re a true business, not a side hustle.
2. Diversify your income. Don’t depend on one company or one platform. That looks too much like employment.
3. Keep your receipts. Business expenses, invoices, contracts, document everything. It matters.
4. Use contracts that prove your independence. Make sure your agreements say you control your work, your schedule, and your routes.
5. Speak up. Contact your reps. Share this with other drivers. Laws like this only stop when the people speak.

The PRO Act was designed to protect workers. But for independent logistics professionals like us, it does the opposite. It strips away our flexibility and forces us into boxes we didn’t ask for.