New Act Shields Independent Contractors from Emerging Regulatory Threats

New Act Shields Independent Contractors from Emerging Regulatory Threats

(DailyAnswer.org) – California Congressman Kevin Kiley has taken a pivotal step in defending the rights of independent contractors with the introduction of the Modern Worker Empowerment Act.

At a Glance

  • The Modern Worker Empowerment Act seeks to protect independent contractors.
  • Kim Kavin, an advocate, supports the legislation.
  • Approximately 60 million freelancers may benefit from this protection.
  • Concern surrounds the Biden-era Department of Labor “misclassification” rule.

Legislative Efforts to Support Independent Contractors

Congressman Kevin Kiley, renowned for his commitment to freelance workers, introduced the Modern Worker Empowerment Act. This legislation aims to counteract stringent rules that currently restrict freelancers, notably those from the ABC Test in the PRO Act. Advocates like Kim Kavin support these measures, as freelancers navigate a regulatory landscape dominated by the Biden administration’s misclassification rules.

The ABC Test measures worker classification but is controversial due to its restrictive interpretation. Adopted in various U.S. regulations, it assumes that every worker is an employee by default unless proven otherwise. The test’s impact is significant, potentially affecting the livelihood of millions who rely on independent contracts.

Challenges with Current Regulations

Kim Kavin leads the charge against the Department of Labor’s stance on misclassification, even engaging in a lawsuit seeking change. As a passionate advocate, she states, “There is no greater champion than Kevin Kiley for independent contractors in the United States Congress.” This fervent search for equity wonders if current leadership might eventually address these policies.

Under Kiley’s proposed act, there’s optimism among freelancers that the balance can be restored. The stakes are high, as nearly a third of the U.S. workforce stands to gain stability. This shift directly challenges AB5-type legislation, which echoes across state and federal levels.

Navigating Complex Legal Requirements

While the ABC Test provides predictability, its rigid criteria often disfavors freelancers. The Borello test, established in 1989, offers an alternative framework, as it weights multiple factors. Although the Borello test has exceptional circumstances, many push for broader application to ensure fair classification.

With workforce dynamics constantly evolving, the introduction of the Modern Worker Empowerment Act couldn’t be more timely. As the legislative environment remains uncertain, proactive measures are crucial to securing protection and ensuring the sustenance of independent working models.

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