Representative Kevin Kiley (R-CA) has introduced legislation to clarify regulations for businesses that hire freelance workers. The Modern Worker Empowerment Act and the Modern Worker Security Act aim to ensure flexibility for independent workers while addressing the risks associated with changing regulatory standards.
The Modern Worker Empowerment Act aims to clarify whether a worker is an employee or an independent contractor. Right now, confusing rules make it hard for businesses and workers to know where they stand. This law would create clear guidelines, making it easier for independent workers and businesses to operate without uncertainty.
The Modern Worker Security Act would let companies offer benefits like healthcare, paid leave, and retirement savings to independent contractors without worrying that the government will force them to classify those workers as employees. This law would help independent workers get important benefits while keeping the flexibility they enjoy.
“California’s disastrous AB 5 law wreaked havoc on independent workers, stripping them of their ability to work on their own terms and forcing businesses to cut off contractor relationships. Shifting federal regulations threaten to impose similar uncertainty nationwide, putting millions of workers at risk. By codifying both these protections into law, we prevent future administrations from undermining independent workers and provide businesses with the confidence to fully engage with a modern, flexible workforce,” said Kiley.
