HR 100119th CongressIn Committee

Protect the Gig Economy Act of 2025

Introduced: Jan 3, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Protect the Gig Economy Act of 2025 would amend Rule 23(a) of the Federal Rules of Civil Procedure to change when a case can be certified as a class action. Specifically, it adds a new requirement that the claim being certified as a class action must not allege that employees are misclassified as independent contractors. In practical terms, this would bar class-action certification for lawsuits that seek to pursue misclassification claims against employers, including many gig economy platforms that rely on independent contractors. The bill was introduced in the House (H.R. 100) in the 119th Congress by Mr. Biggs of Arizona and referred to the Judiciary Committee.

Key Points

1The bill amends Rule 23(a) to add a new condition for class certification: the claim must not allege misclassification of employees as independent contractors.
2It changes the sequence of existing Rule 23(a) requirements by inserting a new paragraph (5) after the current paragraphs (3) and (4), effectively tightening what can be certified as a class.
3Targeted effect: class actions involving misclassification claims (employee vs. independent contractor) would be barred from meeting the Rule 23(a) prerequisites for class certification.
4Purpose: intended to protect gig economy platforms and small businesses that rely on independent contractor arrangements from costly, potentially broad class-action litigation.
5Scope: Applies to federal civil procedure for class actions; does not specify applicability to state law or other remedies beyond federal Rule 23.

Impact Areas

Primary group/area affected- Gig economy workers and the platforms or businesses that employ independent contractors (e.g., drivers, delivery workers, freelancers) that might face misclassification lawsuits.Secondary group/area affected- Plaintiffs and their attorneys who pursue misclassification claims via class actions, as well as defendants facing such actions (employers, platforms).- Class action practitioners and firms that regularly litigate wage-and-hour or misclassification issues.Additional impacts- Shifts potential misclassification claims away from class-wide litigation, potentially forcing individuals to pursue claims individually or through other enforcement mechanisms.- Could affect enforcement dynamics of wage-and-hour and labor-relationship cases at the federal level, possibly altering the strategic approach of plaintiffs and defense counsel.- May interact with existing state misclassification statutes and non-class remedies, potentially increasing the importance of individual lawsuits, arbitration, or regulatory action for misclassification disputes.

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