Clarifying Worker Status: Easier Classification as Independent Contractors.
This bill changes federal rules for determining whether a worker is an employee or an independent contractor. It introduces clear criteria that make it easier for companies to classify individuals as contractors if they have discretion over how the work is done and bear entrepreneurial risks. For citizens, this means more workers might lose access to federal protections like minimum wage, overtime pay, and the right to unionize.
Key points
New independent contractor definition: Focuses on whether the hiring party controls the details of the work, not just the final result.
Workers must possess entrepreneurial opportunities and risks, such as exercising business judgment.
Requiring insurance, safety compliance, or meeting deadlines cannot be used to prove someone is an employee.
These classification changes apply to both wage and hour laws (FLSA) and labor relations laws (NLRA).
Expired
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