Modern Worker Security Act
Congress Proposes Rule to Let Companies Give Benefits to Gig Workers Without Labeling Them Employees
Legislative Progress
Key Points
- This bill changes how the federal government decides if someone is an employee or an independent contractor. It says that if a company gives a worker benefits like health insurance or retirement, that fact cannot be used as evidence to prove the worker is a full employee.
- The policy focuses on portable benefits, which are perks like workers' compensation, paid leave, and skills training that a worker can keep even if they stop working for that specific company or move to a different job.
- Currently, some companies are afraid to offer benefits to gig workers or freelancers because they worry the government will use those benefits as a reason to reclassify the workers as full-time employees, which comes with more regulations and costs.
- The goal of the bill is to allow people who work for apps or do freelance work to get better financial security and health coverage while still keeping the flexibility of being an independent contractor.
- If this becomes law, it would apply to all federal rules, making it easier for businesses to contribute to a worker's savings or insurance plans without changing their legal job status.
Impact Analysis
Personal Impact
Life & Work
Unions have generally opposed efforts to make it easier to classify workers as independent contractors rather than employees. By removing benefits from the classification equation, this bill could make it harder for workers to gain employee status — and employees are the ones who have the legal right to unionize and collectively bargain. This could weaken union organizing efforts in the growing gig economy.
Programs
State Impacts
Milestones
Placed on the Union Calendar, Calendar No. 432.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-506.
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 19 - 16.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Education and Workforce.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesHouse lawmakers advance portable benefits, joint employer bills
The House Education and the Workforce Committee advanced several labor bills including Rep. Kevin Kiley's Modern Worker Security Act, which shields companies offering portable benefits from misclassification lawsuits while allowing gig workers to carry perks between jobs.
IC classification, benefits legislation passes House committee
The Modern Worker Security Act (HR 1320) offers a safe harbor for businesses offering benefits to independent contractors. The bill was passed by the US House Committee on Education and Workforce alongside the Modern Worker Empowerment Act to update worker classification standards.
Stefanik's 'Modern Worker' bills headed for House
House Republican Leadership Chairwoman Elise Stefanik's Modern Worker Empowerment Act and Modern Worker Security Act passed out of committee. The legislation clarifies that offering portable benefits cannot be used as an excuse to reclassify independent contractors as employees.
Source Information
Document Type
Congressional Bill
Official Title
Modern Worker Security Act
Data Sources
Sponsor
Cosponsors
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