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.
This bill aims to change how workers are classified as employees or independent contractors under federal law. It would add a new, explicit standard in the Fair Labor Standards Act (FLSA) for when someone is considered an independent contractor versus an employee, emphasizing control over the details of work and the worker’s own entrepreneurial risks. It also instructs the National Labor Relations Act (NLRA) to apply this same standard when determining employee status. Additionally, it prohibits certain commonly cited factors (like regulatory compliance, safety requirements, insurance, or meeting contractual performance standards) from being used to designate someone as an employee. In short, the bill attempts to promote independent contractor classifications and align NLRA determinations with the FLSA standard. If enacted, the bill could shift several workers from traditional employee status to independent contractor status in contexts covered by FLSA and NLRA, potentially affecting overtime rights, benefits, union protections, and related labor standards. It would also provide a single, unified test to guide classifications across these two major federal labor laws.