Freedom to Work Act

To require Executive agency review of occupational licensing requirements, and for other purposes. 1. Short title This Act may be cited as the Freedom to Work Act 2. Findings Congress finds the following: (1) Occupational licensing has grown exponentially, comprising nearly 25 percent of the United States workforce today, up from 5 percent nearly 60 years ago. (2) According to a 2018 Bureau of Labor Statistics survey, 84.4 percent of employed people with a certification or license responded that their credential was required for their job. (3) Studies show little evidence that licensing improves quality of services and instead costs consumers $203,000,000,000 annually, reduces the number of jobs by 2,850,000, with the most impact on low-income workers seeking to enter occupations for the first time. (4) Occupations experience slower employment growth in States where they are licensed, compared to States where they are not, proving occupational licensing serves as a barrier to employment. (5) Enacted into Federal law in 2014, the stated purpose of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3101 (6) In fiscal year 2021, Congress appropriated $2,845,332,000 for States to assist Americans in overcoming barriers to employment and help employers hire and retain workers. (7) If States enact unnecessary occupational licensing requirements that create barriers for individual job seekers, when no requirement or a less restrictive alternative may serve the same purpose, States are acting in contradiction to the goals of Workforce Innovation and Opportunity Act ( 29 U.S.C. 3101 (8) On December 14, 2020, the Executive Office of the President published Executive Order 13966, Increasing Economic and Geographic Mobility to establish it as the policy of the United States to alleviate unnecessary regulatory burdens on the American people and require the Federal Government to review and report on authorities, regulations, guidance, and policies to alleviate such occupational licensing burdens. (9) Policymakers at all levels of government should require evidence to determine if there is a demonstrated need to regulate an occupation and should consider a range of less restrictive alternatives such as, quality ratings, voluntary third-party professional certifications, bonding or insurance, or inspection requirements. 3. Executive agency review of occupational licensing requirements (a) In general Subchapter I of chapter 31 3117. Executive agency review of occupational licensing requirements (a) In general Not later than 90 days after the date of enactment of the Freedom to Work Act and every 2 years thereafter, the head of each Executive agency shall— (1) review any authority, regulation, or policy of, or Federal law pertaining to, the Executive agency that— (A) imposes an occupational licensing requirement with respect to any position (including any position of a contractor or subcontractor thereof) at the Executive agency; or (B) is causing a State, local, or tribal government to adopt an occupational licensing requirement for public and private sector positions within the State or area encompassing the jurisdiction of the local or tribal government; (2) identify any changes to such an authority, regulation, policy, or law that would result in no requirement or the least restrictive alternative to an occupation licensing requirement with respect to any such position while maintaining protection for consumers and other individuals from significant and demonstrable harm to their health and safety; and (3) submit to the Director of the Office of Management and Budget, the Assistant to the President for Domestic Policy, and the Assistant to the President and Director of Intergovernmental Affairs a report that identifies such changes. (b) Report to President and Congress Not later than 30 days after receiving the report under subsection (a)(3), the Director of the Office of Management and Budget shall— (1) submit to the President and to Congress such report; and (2) publish such report in the Federal Register. (c) Agency implementation Each Executive agency shall implement any changes (excluding any change requiring a change in Federal law) described in a report submitted under subsection (b). (d) Definitions In this section: (1) Occupational license The term occupational license (2) State The term State . (b) Clerical amendment The table of sections for such subchapter is amended by inserting after the item relating to section 3116 the following: 3117. Executive agency review of occupational licensing requirements. . 4. Unified State Plan Section 102(b)(1)(D) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3112(b)(1)(D) , and of how the State will reduce occupational licensing barriers to entry in specific occupations or industry sectors and any broader occupational licensing process reforms

Summary: Freedom to Work Act This bill requires federal agencies to review and reduce occupational licensing requirements. Specifically, each executive agency must review relevant laws, policies, and regulations that institute occupational licensing requirements for agency positions, or that cause a state, local, or tribal government to adopt licensing requirements for positions within their jurisdictions, and identify possible changes to eliminate such requirements or to provide alternatives that are the least restrictive while also maintaining consumer protection. Agencies must implement changes to the extent permissible under law. The bill also requires states to describe their plans to reduce occupational licensing barriers as part of their unified state plans for programs under the Workforce Innovation and Opportunity Act. Several executive orders have required similar review of occupational licensing requirements. For example, the executive order titled Increasing Economic and Geographic Mobility, which was issued on December 14, 2020, outlined certain principles for occupational licensing requirements, including that such requirements should be the least restrictive to competition while also maintaining consumer protection; the order directed executive agencies to review and identify changes to their regulations, guidance, and policies in accordance with these principles. Additionally, the executive order titled Promoting Competition in the American Economy, which was issued on July 9, 2021, directs the Federal Trade Commission to consider addressing practices that inhibit competition, including unfair occupational licensing restrictions, through regulations.