Modern Worker Empowerment Act

*Updated on 2/14/25

Modern Worker Empowerment Act
Bill Sponsor: H.R. 1319, Rep. Kevin Kiley (R-CA)

The Modern Worker Empowerment Act would amend the Fair Labor Standards Act (FLSA) and National Labor Relations Act (NLRA) to protect independent contractors, better address the current economy, and encourage additional growth.

Independent contracting became a controversial issue in recent years as the Biden administration pushed for more restrictive tests in order to stop self-employed workers from working for themselves and instead force them into being employees even if they prefer their status. Reasons include making it possible to unionize these workers, increasing taxes on them, and expanding regulatory control over more businesses and workers.

The Biden Department of Labor (DOL) finalized a new independent contractor rule in 2024 to address what then-Acting Secretary Julie Su deemed “misclassification” of workers. This replaced a DOL rule from the Trump administration that went into effect in March 2021 – a rule which the Biden administration initially improperly attempted to rescind that provided clarity to the “economic realities” test used to determine the employment status of workers under the Fair Labor Standards Act (FLSA). The Biden-era rule has been challenged in court.

The legislation introduced by Rep. Kiley would protect independent contractors by redefining the criteria for classifying workers focusing more heavily on entrepreneurial opportunity, ensuring that those who are genuinely independent contractors are not misclassified as employees. It aims to provide independent contractors with the rights they need to compete in today’s labor market.

Jonathan Wolfson, Chief Legal Officer & Policy Director at The Cicero Institute, praised the bill, saying, “The Modern Worker Empowerment Act provides clarity for workers, businesses, and regulators alike and ensures that small business owners can remain free to work for themselves.”

Bill Status: A version of the Modern Worker Empowerment Act was previously introduced in 2019 and 2021 by former Rep. Elise Stefanik (R-NY) and Sen. Tim Scott (R-SC).

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Additional Resources

PRESS RELEASE: Representative Kiley Introduces Two Bills to Support Independent Contractors
February 13, 2025
Kiley.house.gov

PRESS RELEASE: Stefanik Re-Introduces the Modern Worker Empowerment Act to Protect Independent Contractors
September 14, 2023
Stefanik.house.gov

Backgrounder: What is the Modern Worker Empowerment Act?
May 6, 2022
Austen Bannan, Americans for Prosperity