ATR Commends Committee Passage of Pro-Worker Legislation

Last week, the House Education and Workforce Committee moved to advance three bills focused on transparent and pro-worker labor policy: H.R. 1319, H.R. 1320, and H.R. 4366. The Republican majority supported all three pieces of legislation, staunchly defending worker freedom, small business flexibility, and union accountability in reaction to the previous administration’s regulatory machine.

H.R. 1319, also known as the Modern Worker Empowerment Act, focuses on clearly defining the differences between employees and independent contractors so that contractors are not misclassified and treated as employees. In practice, this is done through amending the technical language change of the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA). This bill paves the way for other significant reforms in H.R. 1320, the Modern Worker Security Act. 

The Modern Worker Security Act creates worker flexibility and allows for great autonomy in benefits plans. Specifically, it permits companies to extend portable benefits to contractors if both parties of the contractual relationship desire to implement them. While remaining self-employed, these independent contractors will no longer have to worry about being reclassified as employees, severely limiting their autonomy, work schedule flexibility, and payment plans for projects or gig work. 

Americans for Tax Reform has endorsed the Modern Worker Empowerment Act and Modern Worker Security Act, urging all members of Congress to pass these bills. 

Finally, H.R. 4366, the Save Local Business Act, clarifies the definition of a joint employer relationship in statute after the Biden administration attempted to change longstanding precedent by executive fiat. H.R. 4366 would specify that an employer can only be considered a “joint employer” of another employer’s workers if both employers “directly, actually, and immediately exercises significant control over the essential terms and conditions of employment.” Small businesses, especially those which use the franchise model, would no longer have to worry about inheriting unfair liabilities and legal risk stemming from the broader definition pursued by President Biden.

By advancing these three bills, the House Education & Workforce Committee is representing the interests of all kinds of workers and small business owners. They will create real reforms and benefit all parties if enacted. Americans for Tax Reform urges the full House of Representatives to take swift action to pass these pieces of legislation.