Modern Worker Security Act

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.