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Protecting Gig Economy and Small Businesses from Class Action Lawsuits.

This bill aims to limit class action lawsuits against companies that primarily use independent contractors rather than employees. This means individuals working in the 'gig economy' (e.g., drivers, delivery personnel) might face challenges in filing class action lawsuits regarding employment misclassification. For citizens, this could mean reduced legal risks for companies using independent contractors, but potentially a more difficult path to seek redress in employment status disputes.
Key points
Limiting Class Actions: New rules will make it harder to file class action lawsuits against companies using independent contractors if the lawsuit alleges employment misclassification.
Supporting Gig Economy: The goal is to protect 'gig economy' companies (e.g., ride-sharing, delivery platforms) and small businesses from costly litigation.
Impact on Workers: Individuals working as independent contractors might find it more challenging to assert their rights in disputes over whether they should be classified as employees.
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Additional Information
Print number: 117_HR_41
Sponsor: Rep. Biggs, Andy [R-AZ-5]
Process start date: 2021-01-04