Modern Worker Empowerment Act
This bill establishes a nationwide standard under federal wage and labor laws that makes it easier for businesses to classify workers as independent contractors rather than employees. Workers are considered independent contractors if the hiring company does not control the specific details of how they perform their work and the worker faces entrepreneurial risks and rewards. Because independent contractors are not covered by federal employment laws, these workers are not entitled to federal minimum wage, overtime pay, or collective bargaining rights.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Businesses and hiring entitiesGain clear statutory criteria allowing them to classify workers as independent contractors under the Fair Labor Standards Act and National Labor Relations Act without requirements like insurance, safety standards, legal compliance, or deadlines being used to deem those workers employees.
Who it burdens
- Workers classified as independent contractorsWorkers determined to be independent contractors under the new standard are excluded from Fair Labor Standards Act wage-and-hour protections (such as minimum wage and overtime) and National Labor Relations Act collective bargaining and organizing protections.
The provisions, in plain language.
Classifies a worker as an independent contractor rather than an employee under federal wage and hour laws if the hiring entity does not exercise significant control over how the work is done and the worker has entrepreneurial risks and opportunities, such as exercising business judgment.
Prohibits classifying a worker as an employee under federal wage and hour laws based on requirements to follow legal regulations, meet strict health and safety standards, carry insurance, or satisfy contractual deadlines.
Applies the same independent contractor classification rules to union organizing and collective bargaining rights determinations under the National Labor Relations Act, effective upon enactment.