21st Century Worker Act: Clear Rules for Employees and Independent Contractors
This act establishes criteria to distinguish between employees and independent contractors in Federal law. It allows workers who do not fall into mandatory categories to choose their preferred classification through a written election.
Key points
Establishes definitions for who must be classified as a mandatory employee versus a mandatory independent contractor.
Allows workers to choose their own employment status if they do not fall into mandatory legal categories.
Mandatory employee status for individuals in a substantial economic relationship, including working an average of 30 or more hours per week for a single payer for at least 4 consecutive weeks.
Financial penalties for willfully or recklessly misclassifying a service provider payee as an independent contractor.
Requires a GAO study on harmonizing worker definitions across other covered Federal laws.
Status:
Introduced
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