Modern Worker Empowerment Act
- Bill Number
- H.R. 1319
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-02-20: Placed on the Union Calendar, Calendar No. 431.
- Last Updated
- 2026-06-11T23:26:41Z
AI-Generated Summary
Purpose
The Modern Worker Empowerment Act (H.R. 1319) aims to provide a clearer legal standard for classifying workers as employees or independent contractors under two key federal labor laws: the Fair Labor Standards Act of 1938 (FLSA), which covers wages, hours, and working conditions, and the National Labor Relations Act (NLRA), which protects workers' rights to organize and bargain collectively. The goal is to reduce ambiguity in worker classification, particularly for businesses relying on independent contractors.
Key Provisions
- Definition of Independent Contractor under FLSA: Adds a new subsection to FLSA Section 3(e) stating that a worker is an independent contractor (not an employee) if:
- The hiring entity does not exert significant control over the details of how the work is done (though control over the final outcome is allowed).
- The worker faces the typical opportunities and risks of running a business, such as using managerial skills, business judgment, or professional expertise to make decisions.
- Prohibited Factors in Classification: Explicitly bars using the following to classify someone as an employee:
- Requirements to follow laws, regulations, or statutes.
- Stricter-than-required health and safety rules.
- Mandates to carry any type of insurance.
- Contractual deadlines or performance expectations.
- Alignment with NLRA: Amends NLRA Section 2(3) to directly incorporate the new FLSA independent contractor definition when determining employee status for union and collective bargaining rights.
- Effective Date: The changes apply to all worker classifications made on or after the bill's enactment.
Significant Changes to Existing Law
- Previously, both FLSA and NLRA used a multi-factor "economic realities" test (developed through court rulings and agency guidance) to classify workers, considering aspects like control, financial dependence, and integration into the business. This bill replaces that with a simpler two-part test focused on control over work details and entrepreneurial risks.
- It removes certain everyday business practices (like safety rules or deadlines) from the classification analysis, which could previously tip the scales toward employee status.
- The NLRA now explicitly defers to the FLSA's standard, creating uniformity across the two laws that were previously interpreted somewhat independently.
Potential Impacts
- On Government Agencies: The Department of Labor (DOL), which enforces FLSA, and the National Labor Relations Board (NLRB), which oversees NLRA, will need to update guidance, regulations, and enforcement practices to align with the new test. This could streamline investigations but might increase initial administrative workload.
- On Citizens (Workers): Independent contractors may gain more flexibility but could lose employee protections like minimum wage, overtime pay, unemployment benefits, and union rights. Employees in borderline roles might face reclassification, affecting job security and benefits.
- On Businesses: Employers, especially in gig economy sectors (e.g., ride-sharing, freelancing), could more easily classify workers as contractors, potentially lowering costs for taxes, insurance, and benefits. However, it might lead to short-term legal challenges during the transition.
- On International Relations: No direct impacts, as the bill focuses on domestic labor standards.
Main Stakeholders Affected
- Businesses and Employers: Particularly those in industries with high contractor use, such as technology, construction, and services; they benefit from clearer rules but risk lawsuits if misapplying the test.
- Independent Contractors and Freelancers: Gain affirmation of their status but may forfeit certain labor protections.
- Traditional Employees and Labor Unions: Could see reduced membership and bargaining power if more workers are classified as contractors, limiting collective action.
- Government Agencies: DOL and NLRB, as primary enforcers, along with state labor departments that often follow federal standards.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill simplifies classification but may spark litigation to define terms like "significant control" or "entrepreneurial risks," potentially leading to court interpretations similar to past FLSA/NLRA cases. It overrides recent agency rules (e.g., DOL's 2021 independent contractor rule) without needing new regulations.
- Constitutional Implications: None apparent; the changes fall under Congress's authority to regulate interstate commerce and labor conditions, as upheld in prior Supreme Court rulings on FLSA and NLRA.
- Political Implications: The bill reflects a push for business-friendly reforms by standardizing classifications in favor of flexibility, but it could face opposition from labor advocates concerned about eroding worker protections. As a House-reported bill with Republican sponsors, it highlights partisan divides on labor policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (23)
Rep. Rutherford, John H. [R-FL-5], Rep. Moolenaar, John R. [R-MI-2], Rep. Messmer, Mark [R-IN-8], Rep. Ogles, Andrew [R-TN-5], Rep. Kean, Thomas H. [R-NJ-7], Rep. Grothman, Glenn [R-WI-6], Rep. Stefanik, Elise M. [R-NY-21], Rep. Burlison, Eric [R-MO-7], Rep. Allen, Rick W. [R-GA-12], Rep. Owens, Burgess [R-UT-4], Rep. Onder, Robert F. [R-MO-3], Rep. Baumgartner, Michael [R-WA-5], Rep. Burchett, Tim [R-TN-2], Rep. Miller, Mary E. [R-IL-15], Rep. Letlow, Julia [R-LA-5], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Arrington, Jodey C. [R-TX-19], Rep. Steube, W. Gregory [R-FL-17], Rep. Gill, Brandon [R-TX-26], Rep. Murphy, Gregory F. [R-NC-3], Rep. Donalds, Byron [R-FL-19], Rep. Babin, Brian [R-TX-36], Rep. Foxx, Virginia [R-NC-5]
Recent Actions
- 2026-02-20: Placed on the Union Calendar, Calendar No. 431.
- 2026-02-20: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-505.
- 2026-02-20: Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-505.
- 2025-07-23: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 19 - 16.
- 2025-07-23: Committee Consideration and Mark-up Session Held
- 2025-02-13: Referred to the House Committee on Education and Workforce.
- 2025-02-13: Introduced in House
- 2025-02-13: Introduced in House
Bill Versions
- 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. — issued 2025-02-13 — PDF (4 pages)
- Modern Worker Empowerment Act — issued 2026-02-20 — PDF (6 pages)