US Codex
Bill
Notes

H.R. 1319 — what changed

Modern Worker Empowerment Act

From Introduced in House to Reported in House. 2 sections amended and 2 added between Introduced in House and Reported in House.

Section 1 Short title

added This Act may be cited as the “Modern Worker Empowerment Act”.

(a)
removed 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)
removed by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively;
(2)
removed in paragraph (1), by striking “paragraphs (2), (3), and (4)” and inserting “paragraphs (3), (4), and (5)”; and
(3)
removed by inserting after paragraph (1) the following:

removed “(2)

removed “(A) An individual shall be determined to be an independent contractor rather than an employee of another person if—

removed “(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

removed “(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.

removed “(B) The following factors may not be used in determining that an individual is an employee of another person:

removed “(i) Whether such other person requires the individual to comply with legal, statutory, or regulatory requirements.

removed “(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.

removed “(iii) Whether such other person requires the individual to carry insurance of any kind.

removed “(iv) Whether such other person requires the individual to meet contractually agreed-upon performance standards, such as deadlines.”

Sec. 2 Criteria for determining employee status

changed Section 2(3) 3(e) of the National Fair Labor Relations Standards Act of 1938 (29 U.S.C. 152(3)) 203(e)) is amended—

(1)
changed by striking “(3) The term “employee” shall” redesignating paragraphs (2), (3), and inserting the following:(4) as paragraphs (3), (4), and (5), respectively;

removed “(3)

removed “(A) The term “employee” shall”

(2)
changed in paragraph (1), by adding at the end the following:striking “paragraphs (2), (3), and (4)” and inserting “paragraphs (3), (4), and (5)”; and
(3)
added by inserting after paragraph (1) the following:

added “(2)

added “(A) An individual shall be determined to be an independent contractor rather than an employee of another person if—

added “(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

added “(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.

added “(B) The following factors may not be used in determining that an individual is an employee of another person:

added “(i) Whether such other person requires the individual to comply with legal, statutory, or regulatory requirements.

added “(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.

added “(iii) Whether such other person requires the individual to carry insurance of any kind.

added “(iv) Whether such other person requires the individual to meet contractually agreed-upon performance standards, such as deadlines.”

removed “(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. 3 Employee classification under the National Labor Relations Act

added

added Section 2(3) of the National Labor Relations Act (29 U.S.C. 152(3)) is amended—

(1)
added by striking “(3) The term employee shall” and inserting the following:

added “(3)

added “(A) The term employee shall”

(2)
added by adding at the end the following:

added “(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

added

added 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.