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.

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. 1. Criteria for determining employee status (a) Criteria for determining employee status under the Fair Labor Standards Act Section 3(e) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(e) (1) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively; (2) in paragraph (1), by striking paragraphs (2), (3), and (4) paragraphs (3), (4), (5), and (6) (3) by inserting after paragraph (1) the following: (2) (A) An individual shall be determined to be an independent contractor rather than an employee of another person if— (i) such other person does not exercise significant control over the details of the way the work is performed by the individual, without regard to any control the other person may exercise over the final result of the work performed; and (ii) while performing such work, the individual has the opportunities and risks inherent with entrepreneurship, such as the discretion to exercise managerial skill, business acumen, or professional judgment. (B) The following factors may not be used in determining that an individual is an employee of another person: (i) Whether such other person requires the individual to comply with legal, statutory, or regulatory requirements. (ii) Whether such other person requires the individual to comply with health and safety standards that are more stringent than otherwise applicable health and safety standards. (iii) Whether such other person requires the individual to carry insurance of any kind. (iv) Whether such other person requires the individual to meet contractually agreed-upon performance standards, such as deadlines. . 2. Employee classification under the National Labor Relations Act Section 2(3) of the National Labor Relations Act ( 29 U.S.C. 152(3) (1) by striking (3) The term employee (3) (A) The term employee ; and (2) by adding at the end the following: (B) Section 3(e)(2) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203(e)(2) employee person .

Summary: 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.