Congress·Reported·H.R. 1319

Rep. Kiley's Independent Contractor Classification Bill Under House Review

Modern Worker Empowerment Act

8 months ago·View on Congress.gov

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Key Points

This bill, introduced by Representative Kiley, changes how the government decides if someone is an employee or an independent contractor. This is important because employees get legal protections like a guaranteed minimum wage and overtime pay, while independent contractors generally do not.
From policy text
“Mr. Kiley of California (for himself, Mr. Rutherford, Mr. Moolenaar, Mr. Messmer, and Mr. Ogles) introduced the following bill”
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Under the new rules, a worker would be labeled an independent contractor if the company they work for does not control the specific details of how they do their job. The worker must also have the chance to use their own business skills to make a profit or face financial risks.
From policy text
“An individual shall be determined to be an independent contractor rather than an employee of another person if-- ``(i) such other person does not exercise significant control over the details of the way the work is performed by the individual, without regard to any control the other person may exercise over the final result of the work performed; and ``(ii) while performing such work, the individual has the opportunities and risks inherent with entrepreneurship”
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The bill lists several things that cannot be used to prove someone is an employee. For example, a company can still require a worker to follow safety laws, carry insurance, or meet specific deadlines without that worker automatically becoming an employee.
From policy text
“The following factors may not be used in determining that an individual is an employee of another person: ``(i) Whether such other person requires the individual to comply with legal, statutory, or regulatory requirements. ``(ii) Whether such other person requires the individual to comply with health and safety standards that are more stringent than otherwise applicable health and safety standards. ``(iii) Whether such other person requires the individual to carry insurance of any kind.”
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These changes would apply to two major federal labor laws: one that handles pay and hours, and another that handles the right to join a union. This would create a single, consistent standard for businesses to use when hiring workers.
From policy text
“Section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)(2)) shall be used in determining whether an individual is an independent contractor or an employee of another person.”
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If passed, these rules would apply to any decisions made about a worker's status starting on the day the bill becomes law. It aims to give more clarity to the millions of Americans who work as freelancers, gig workers, or contractors.
From policy text
“The amendments made by this Act shall apply with respect to a determination of whether an individual is an independent contractor or an employee of a person that is made on or after the date of enactment of this Act.”
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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

StateScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

3 milestones6 actions

Feb 20, 2026House

Placed on the Union Calendar, Calendar No. 431.

Feb 20, 2026House

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-505.

Jul 23, 2025House

Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 19 - 16.

Jul 23, 2025House

Committee Consideration and Mark-up Session Held

Feb 13, 2025House

Referred to the House Committee on Education and Workforce.

What Happens Next

Projected impacts based on AI analysis

Upon enactment, if passed

New worker classification standard takes effect

If the bill becomes law, any new determination about whether someone is an employee or independent contractor would use the new, looser two-part test. Companies could immediately begin reclassifying workers, affecting pay protections and union rights.

Related News

2 articles

Politico Pro·8 months ago

House lawmakers advance portable benefits, joint employer bills

The House Education and the Workforce Committee advanced the Modern Worker Empowerment Act, which amends the Fair Labor Standards Act and the National Labor Relations Act to create a federal standard for determining whether a worker is an employee or an independent contractor.

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Staffing Industry Analysts·8 months ago

IC classification, benefits legislation passes House committee

The Modern Worker Empowerment Act (H.R. 1319) would consider an individual an independent contractor if the hiring party does not exercise significant control over the details of how the work is done and if the individual has opportunities and risks inherent with entrepreneurship.

Related Bills

1 bill

H.R. 4154Related bill

Employee Rights Act

Jun 26 — Referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.