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Congress·In Progress·7 months ago

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

Also known as: Modern Worker Empowerment Act

Impact Analysis

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

State Impacts

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

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.
  • 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.
  • 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.
  • 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.
  • 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.
Labor EmploymentEconomy Finance

Milestones

3 milestones4 actions
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.

Feb 13, 2025

Introduced in House

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·7 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·7 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.

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Source Information

Document Type

Congressional Bill

Official Title

Modern Worker Empowerment Act

Bill NumberHR 1319
Congress119th Congress
ChamberHouse of Representatives
Latest ActionOrdered to be Reported in the Nature of a Substitute by the Yeas and Nays: 19 - 16.

Sponsor

Cosponsors

(23)
R: 23

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.