HR1319-119

1. Criteria for determining employee status Section 3(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)) is amended— by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; in paragraph (1), by striking paragraphs (2), (3), and (4) and inserting paragraphs (3), (4), and (5); and by inserting after paragraph (1) the following: An individual shall be determined to be an independent contractor rather than an employee of another person if— 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 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. The following factors may not be used in determining that an individual is an employee of another person: Whether such other person requires the individual to comply with legal, statutory, or regulatory requirements. 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. Whether such other person requires the individual to carry insurance of any kind. Whether such other person requires the individual to meet contractually agreed-upon performance standards, such as deadlines. (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)) is amended— by striking (3) The term employee shall and inserting the following: The term employee shall by adding at the end the following: Section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)(2)) shall be used in determining whether an individual is an independent contractor or an employee of another person. (3)(A)The term employee shall ; and (B)Section 3(e)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)(2)) shall be used in determining whether an individual is an independent contractor or an employee of another person. .