HRPA Supports Independent Worker Legislation

HR Policy Association submitted a letter to the Senate Health, Education, Labor, and Pensions Committee expressing its support for a pair of bills that would modernize worker classification law and expand access to benefits for contractors.

The Unlocking Benefits for Independent Workers Act and Modern Worker Empowerment Act were introduced together this week by Committee Chair Bill Cassidy (R-LA) and Sen. Tim Scott (R-SC) respectively.

• Simplifying worker classification: The Modern Worker Empowerment Act would establish a federal legal standard for worker classification (employee vs. independent contractor) based on common law standards – i.e., how courts have determined worker classification for years.

• Providing access to benefits for contractors: The Unlocking Benefits for Independent Workers Act would allow employers to provide benefits to contractors usually reserved for full-time employees – such as health care, retirement contributions, and paid leave – without changing the contractor’s status to employee under federal law.

HRPA’s letter: The Association strongly advocates passage of both bills, which would bring much needed clarification to worker classification law and allow employers to provide benefits to contractors without creating an employer-employee relationship – a relationship that is often not desired by either party.

• In the letter, HRPA emphasized the need to end federal regulatory ping-pong and patchwork state approaches on worker classification and establish a federal standard. 

• HRPA also applauded the effort to expand access to benefits for contractors while preserving desired flexibility – a legislative solution long advocated by the Association.

What’s next: Chair Cassidy has expressed significant interest in addressing independent contractor issues this Congress, meaning we could see movement before the end of the year on both bills.

• The bills closely mirror legislation previously introduced in the House by Rep. Kevin Kiley (R-CA), which the Association also supported.

• More and more states are moving to address independent contractor issues themselves, creating increased urgency for a federal solution.