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Congress·In Progress·7 months ago

Congress Proposes Rule to Let Companies Give Benefits to Gig Workers Without Labeling Them Employees

Also known as: Modern Worker Security 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 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.
Labor EmploymentHealthcare

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

2026

The bill moves to a full House vote after being reported out of committee

The bill still needs to pass the full House, then the Senate, and be signed by the President before it becomes law — passage is not guaranteed

Related News

4 articles
Politico·7 months ago

House 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.

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Staffing Industry Analysts·7 months ago

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.

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Sun Community News·7 months ago

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.

C+

Source Information

Document Type

Congressional Bill

Official Title

Modern Worker Security Act

Bill NumberHR 1320
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

(9)
R: 9

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.