Representative Kiley Introduces Two Bills to Support Independent Contractors

WASHINGTON – Today Representative Kevin Kiley (R-CA) introduced the Modern Worker Empowerment Act and the Modern Worker Security Act to protect independent workers and businesses from regulatory uncertainty. The Modern Worker Empowerment Act amends existing federal labor laws to establish a clear and predictable test for determining whether a worker is classified as an independent contractor or an employee. The Modern Worker Security Act establishes a federal safe harbor that allows companies to voluntarily provide portable benefits to independent contractors without the risk of federal agencies reclassifying those workers as employees.

Click here to view text of the Modern Worker Empowerment Act. Click here to view text of the Modern Worker Security Act. 

“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,” said Rep. Kiley. “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.”

“Flex applauds Representatives Kiley, Moolenaar, Messmer, Ogles, and Rutherford for introducing the Modern Worker Empowerment Act (MWEA) and supporting the millions of Americans who choose to pursue independent work opportunities. Technological innovation has made flexible, independent work available to more people than ever before, and legislation like the MWEA helps support entrepreneurship and the choices that individuals make to live, work, and run their businesses on their own terms.

“We applaud Rep. Kiley for introducing legislation to help clear federal impediments to companies seeking to provide portable benefits. While there is additional work to be done at the federal and state levels, this bill would remove some of the federal legal hurdles to providing workers with benefits while retaining the independence that millions of workers appreciate and depend on every day. We appreciate Rep. Kiley’s strong leadership and consistent support for independent work,” said Kristin Sharp, CEO of Flex Association.

“Rep. Kiley’s Modern Worker Empowerment Act modernizes outdated federal standards, providing much-needed clarity and ensuring that workers and businesses alike can continue to innovate, grow, and succeed in today’s evolving economy,” said Rosanna Maietta, President and CEO at the American Hotel & Lodging Association. “We thank Rep. Kiley for championing this vital cause and standing up for the freedom of workers to shape their futures on their own terms. AHLA is proud to support this effort as it moves forward in Congress.”

“When the previous administration replaced a straightforward definition for independent contractors with an opaque and deliberately confusing standard, it jeopardized the livelihoods of independent truckers nationwide who have spent years or even decades building their own small businesses,” said American Trucking Associations Chief Advocacy and Public Affairs Officer Ed Gilroy. “Congressman Kiley has been an outstanding champion of the more than 350,000 truckers who chose this employment path because of the economic opportunity it creates and the flexibility it provides.  ATA stands firmly behind these bills to protect independent contractors, and we will continue to work alongside Congressman Kiley and other Members of Congress to defend Americans’ right to earn a living in the manner that they choose.”

“Retailers engage in various business relationships with independent contractors, encompassing activities such as billing, facility maintenance, data analysis, delivery, and marketing services. We continue to urge Congress to pass pro-worker legislation to support these workers who are vital to our industry and our economy. Accordingly, the National Retail Federation supports Representative Kiley’s Modern Worker Security Act because it would expand independent workers’ access to benefits without placing into question their status as independent contractors and ability to work on their own terms. Moreover, NRF supports Representative Kiley’s Modern Worker Empowerment Act as it establishes a clear definition of independent contractor status across federal law, bringing certainty to businesses and workers who are currently regulated under a number of varying and confusing legal standards. These commonsense, innovative bills will support independent workers and the many businesses that rely on them,” said Edwin Egee, Vice President of Government Relations and Workforce Development at the National Retail Federation.

“Many independent workers want the opportunity to pay for benefits like flexible spending accounts, retirement accounts, or health insurance with the money they earn in their work. The Modern Worker Security Act will protect businesses that want to pay the contractors in a mix that best meets their needs without risking undue scrutiny from federal and state regulators who claim these payments create an employee-employer relationship. We applaud Rep. Kiley for sponsoring this important bill.

“Millions of Americans are self employed and own their own businesses and provide services as independent contractors, but some regulators and courts have built complicated hoops for these Americans to jump through to “prove” they are truly independent workers. 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,” said Jonathan Wolfson, Chief Legal Officer & Policy Director at The Cicero Institute.

“Stride supports the Modern Worker Security Act because it creates a safe harbor for companies, trade groups, and third parties to contribute to portable benefits—ensuring independent workers can access healthcare, paid time off, and retirement savings without compromising their flexibility. Our country’s benefits system is broken, leaving out a large and growing portion of the American workforce, particularly in industries like trucking, nursing, gig work, freelancing, and seasonal employment. This Bill provides much-needed regulatory clarity, allowing companies to support independent workers without risking reclassification for workers. Workers are enjoying the benefits of a similar model in states like Utah and Pennsylvania and we look forward to workers nationwide enjoying the same financial security,” said Noah Lang, CEO and Co-Founder of Stride Health, Inc.

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