Sen. Lee Introduces 21st Century Worker Act to Redefine Independent Contractor Status
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This bill’s path across every version that has carried it.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
This bill would fundamentally reshape how gig workers are classified. Many gig workers who currently have ambiguous status would fall into the "elective classification" category and could choose to remain independent contractors — or opt into employee status with benefits. However, some gig workers who meet the "substantial economic relationship" test (30+ hours/week for one company) would be reclassified as mandatory employees, potentially gaining benefits but losing flexibility. The net effect depends heavily on each worker's individual arrangement.
“A service provider payee that does not meet either of the requirements of section 103 or section 104 is an elective classification service provider payee. Each elective classification service provider payee shall elect whether to be classified as an employee or an independent contractor in accordance with this section.”
Read twice and referred to the Committee on Finance.
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Introduced in Senate
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In 'The Advocates' column, the report highlights Sen. Mike Lee's 21st Century Worker Act, which aims to settle uncertainty over worker classification. The bill would create a bright-line test to determine if a worker is an employee or a freelancer, providing flexibility for the gig economy.
Sen. Mike Lee introduced the 21st Century Worker Act to replace the current patchwork of conflicting standards for determining independent contractor status. The bill provides a bright line test across federal labor and tax statutes to settle confusion while preserving worker flexibility.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
21st Century Worker Act
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