Official Summaries

This bill specifies a legal standard for determining whether an individual is considered an independent contractor rather than an employee for the purposes of federal labor laws that address issues such as the federal minimum wage, overtime compensation, and collective bargaining. The rights and protections provided by these laws exclusively apply to employees.

Under the bill, an individual is considered an independent contractor if (1) another individual or entity does not exercise significant control over the details of how the individual's work is performed, without regard to any control the other individual or entity may exercise over the final result of the work performed; and (2) while performing such work, the individual has opportunities and risks inherent with entrepreneurship (for example, the discretion to exercise professional judgment).

The bill also sets forth factors that may not be used to determine whether an individual is an employee. Specifically, factors such as whether another individual or entity requires the individual to meet certain legal, health and safety, insurance, or performance requirements may not be used to make such a determination.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1319 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 431
119th CONGRESS
  2d Session
                                H. R. 1319

                          [Report No. 119-505]

 To amend the Fair Labor Standards Act of 1938 and the National Labor 
   Relations Act to clarify the standard for determining whether an 
           individual is an employee, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2025

 Mr. Kiley of California (for himself, Mr. Rutherford, Mr. Moolenaar, 
 Mr. Messmer, and Mr. Ogles) introduced the following bill; which was 
          referred to the Committee on Education and Workforce

                           February 20, 2026

    Additional sponsors: Mr. Kean, Mr. Grothman, Ms. Stefanik, Mr. 
    Burlison, Mr. Allen, Mr. Owens, Mr. Onder, Mr. Baumgartner, Mr. 
 Burchett, Mrs. Miller of Illinois, Ms. Letlow, Mr. Carter of Georgia, 
Mr. Arrington, Mr. Steube, Mr. Gill of Texas, Mr. Murphy, Mr. Donalds, 
                        Mr. Babin, and Ms. Foxx

                           February 20, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 13, 2025]


_______________________________________________________________________

                                 A BILL


 
 To amend the Fair Labor Standards Act of 1938 and the National Labor 
   Relations Act to clarify the standard for determining whether an 
           individual is an employee, and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Modern Worker Empowerment Act''.

SECTION 2. CRITERIA FOR DETERMINING EMPLOYEE STATUS.

    Section 3(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
203(e)) is amended--
            (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (3), (4), and (5), respectively;
            (2) in paragraph (1), by striking ``paragraphs (2), (3), 
        and (4)'' and inserting ``paragraphs (3), (4), and (5)''; and
            (3) by inserting after paragraph (1) the following:
    ``(2)(A) An individual shall be determined to be an independent 
contractor rather than an employee of another person if--
            ``(i) such other person does not exercise significant 
        control over the details of the way the work is performed by 
        the individual, without regard to any control the other person 
        may exercise over the final result of the work performed; and
            ``(ii) while performing such work, the individual has the 
        opportunities and risks inherent with entrepreneurship, such as 
        the discretion to exercise managerial skill, business acumen, 
        or professional judgment.
    ``(B) The following factors may not be used in determining that an 
individual is an employee of another person:
            ``(i) Whether such other person requires the individual to 
        comply with legal, statutory, or regulatory requirements.
            ``(ii) Whether such other person requires the individual to 
        comply with health and safety standards that are more stringent 
        than otherwise applicable health and safety standards.
            ``(iii) Whether such other person requires the individual 
        to carry insurance of any kind.
            ``(iv) Whether such other person requires the individual to 
        meet contractually agreed-upon performance standards, such as 
        deadlines.''.

SEC. 3. EMPLOYEE CLASSIFICATION UNDER THE NATIONAL LABOR RELATIONS ACT.

    Section 2(3) of the National Labor Relations Act (29 U.S.C. 152(3)) 
is amended--
            (1) by striking ``(3) The term `employee' shall'' and 
        inserting the following:
    ``(3)(A) The term `employee' shall''; and
            (2) by adding at the end the following:
    ``(B) Section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 203(e)(2)) shall be used in determining whether an individual is 
an independent contractor or an employee of another person.''.

SEC. 4. APPLICATION.

    The amendments made by this Act shall apply with respect to a 
determination of whether an individual is an independent contractor or 
an employee of a person that is made on or after the date of enactment 
of this Act.
                                                 Union Calendar No. 431

119th CONGRESS

  2d Session

                               H. R. 1319

                          [Report No. 119-505]

_______________________________________________________________________

                                 A BILL

 To amend the Fair Labor Standards Act of 1938 and the National Labor 
   Relations Act to clarify the standard for determining whether an 
           individual is an employee, and for other purposes.

_______________________________________________________________________

                           February 20, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed