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.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1319 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1319
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
_______________________________________________________________________
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. CRITERIA FOR DETERMINING EMPLOYEE STATUS.
(a) Criteria for Determining Employee Status Under the Fair Labor
Standards Act.--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. 2. 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Workforce.
Committee Consideration and Mark-up Session Held
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 19 - 16.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-505.
Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-505.
Placed on the Union Calendar, Calendar No. 431.
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