A bill to amend the Fair Labor Standards Act of 1938 and the National Labor Relations Act to clarify the standard for determining whether an individual is an employee, and for other purposes.
3/14/2024, 3:08 AMSummary of Bill S 3018
Bill 118 s 3018, also known as the Employee Rights Act, aims to amend the Fair Labor Standards Act of 1938 and the National Labor Relations Act in order to provide clarity on the definition of an employee. The bill seeks to establish a standard for determining whether an individual is considered an employee, which is a crucial distinction in labor law.The main purpose of this bill is to address the growing issue of misclassification of workers as independent contractors rather than employees. This misclassification can lead to workers being denied important benefits and protections that are guaranteed to employees under federal labor laws.
By clarifying the standard for determining employee status, the bill aims to ensure that workers are properly classified and receive the benefits and protections they are entitled to. This includes access to minimum wage, overtime pay, and other important labor rights. Overall, Bill 118 s 3018 seeks to protect the rights of workers and ensure that they are treated fairly and equitably in the workplace. It is an important piece of legislation that aims to address a significant issue in the labor market and provide clarity on the classification of workers.
Congressional Summary of S 3018
This bill specifies a legal standard for determining whether an individual is considered an independent contractor rather than an employee for the purposes of federal labor laws that address issues such as the federal minimum wage, overtime compensation, and collective bargaining. The rights and protections provided by these laws exclusively apply to employees.
Under the bill, an individual is considered an independent contractor if (1) another individual or entity does not exercise significant control over the details of how the individual's work is performed, without regard to any control the other individual or entity may exercise over the final result of the work performed; and (2) while performing such work, the individual has opportunities and risks inherent with entrepreneurship (for example, the discretion to exercise professional judgment).
The bill also sets forth factors that may not be used to determine whether an individual is an employee. Specifically, factors such as whether another individual or entity requires the individual to meet certain legal, health and safety, insurance, or performance requirements may not be used to make such a determination.
