Bipartisan Bill In Congress Would Recognize Independent Contractor Status As A Choice Of Worker

The Worker Flexibility and Choice Act (HB 8442) was introduced in Congress on July 20, 2022. The bill, introduced on a bipartisan basis, would establish a new work arrangement that combines flexibility of independent contractor work with certain workplace protections and opportunities for benefits. As announced in a press release that day from Rep. Elise Stefanik (R-NY), one of the bill’s co-sponsors, the bill seeks to “empower individuals with the choice to determine how they wish to engage in the modern economy, while providing legal certainty that will expand economic opportunities through independent work and allow businesses to offer workplace benefits without undermining the flexibility of the work arrangement.” 

The relationship between the worker and the business would be clearly defined through a “worker flexibility agreement” that would ensure the worker retains the freedom and flexibility to accept or reject offers to provide their services, giving them control over when, where, and how much they wish to work; promote worker freedom without infringing on certain workplace rights, including protections against discrimination, retaliation, and harassment; allow the worker to engage with and provide services for multiple entities at any given time; and provide the worker a written summary of any health, pension, training, other benefits they may be eligible to receive. 

Under a worker flexibility agreement, the worker would not be treated as an employee for federal tax purposes or under the FLSA. In addition, a worker’s choice to work flexibly under an agreement would be protected by a provision in the law that supersedes and preempts state and local wage and hour and tax laws that would otherwise require the worker to be treated as an employee. Rep. Stefanik stated in her press release: “The bipartisan Worker Flexibility and Choice Act will empower workers to choose the type of work that best fits their needs, while allowing businesses to offer workplace benefits traditionally only available to employees….” The other co-sponsors are Reps. Henry Cuellar (D-TX) and Michelle Steel (R-CA).  While the bill is a bipartisan initiative, it has little chance of passage in this Congress.