H.R. 1319 the "Modern Worker Empowerment Act"; H.R. 1320 the "Modern Worker Security Act"; H.R. 4366 the "Save Local Business Act"; H.R. 4312 the "Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act"; H.R. 4307 the "Enhancing Detection of Human Trafficking Act"

Committee on Economic and Educational Opportunities

2025-07-23

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Source: Congress.gov

Summary

This meeting of the committee addressed five pieces of legislation, primarily focusing on labor laws related to independent contractors and the joint employer standard, reforms for college athletics, and human trafficking detection [ 00:09:56 ] . Discussions were largely divided along partisan lines, with the minority party expressing strong opposition to most bills [ 00:18:05 ]

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Themes

Worker Classification and Benefits

The committee considered H.R. 1319, the Modern Worker Empowerment Act, and H.R. 1320, the Modern Worker Security Act, both aiming to clarify the distinction between employees and independent contractors [ 00:10:28 ] . Proponents argued H.R. 1319 would provide certainty for businesses and contractors, preventing "administrative whiplash" and restoring a common-sense standard, while H.R. 1320 would offer a safe harbor for businesses providing benefits to independent contractors without reclassification risks [ 00:11:04 ] . Opponents countered that H.R. 1319 creates loopholes for employers to misclassify workers, stripping them of basic protections like minimum wage, overtime, and the right to organize [ 00:18:33 ]

. They also contended that H.R. 1320 addresses a non-existent problem and legitimizes "meager contributions" over robust benefits . Multiple amendments by the minority to protect flexible work arrangements, ensure court access over forced arbitration, clarify routine discretion, and exempt child labor cases from the reclassification rule were rejected .

Joint Employer Standard

H.R. 4366, the Save Local Businesses Act, sought to establish a clear, common-sense joint employer test, reversing the Biden-Harris administration's standard that created uncertainty for businesses, particularly in the franchise industry [ 00:12:21 ]

. Supporters argued it would restore the traditional "direct and immediate control" standard, protecting contractors and franchisors from liability for actions of workers they do not directly supervise . Critics argued the bill would strip workers of protections, make it harder for unions to negotiate, and could result in no employer being held liable for wage violations . Concerns were also raised that it could make child labor violations easier by narrowing the definition of employment . An amendment to specifically exclude child labor cases from the bill's narrow definition was not adopted .

College Athletics Reform

The committee examined H.R. 4312, the Student Compensation and Opportunity Through Rights and Endorsement (SCORE) Act, designed to stabilize college athletics amid litigation and changes to name, image, and likeness (NIL) rules [ 00:13:15 ]

. Proponents highlighted its aim to establish a national framework for athlete compensation, clarify student athletes as non-employees, and ensure academic and life support [ 00:13:22 ] . They emphasized that employee status for athletes would lead to increased costs, potential unionization, and the closure of non-revenue sports programs . Opponents criticized the bill as a "blank check" to the NCAA, stripping athletes of labor and employment rights, and failing to adequately address Title IX protections . Numerous amendments were proposed, including extending medical coverage for injuries, ensuring equal compensation across sports, removing the ban on employee status for athletes, striking preemption language over state laws, strengthening Title IX reporting, and addressing athlete travel burdens . All these amendments were voted down .

Enhancing Detection of Human Trafficking

H.R. 4307, the Enhancing Detection of Human Trafficking Act, a bipartisan bill, aimed to direct the Department of Labor (DOL) to fight human trafficking by educating enforcement personnel, providing necessary tools, and establishing a framework for assisting law enforcement [ 00:14:15 ]

. The Ranking Member supported this bill . However, the bill was abruptly pulled from consideration, leading to concerns from Representative Bonamici about transparency and potential connections to the Jeffrey Epstein case, as a former Labor Secretary had resigned amidst an investigation into a plea deal with Epstein [ 05:18:48 ] .

Tone of the Meeting

The meeting was characterized by a highly polarized and contentious atmosphere, with strong partisan divisions evident in debates and voting [ 00:18:05 ]

. The majority of proposed amendments from the minority party were rejected along party lines, often after heated debate . Procedural issues, including points of order and recorded vote requests, were frequent, contributing to the formal and often rigid nature of the proceedings [ 00:27:14 ] . While there was a brief moment of apparent collaboration when one amendment was withdrawn based on the Chair's commitment to further discussion , this was an exception to the prevailing confrontational dynamic. Minority members frequently expressed disappointment and frustration with the majority's approach and the perceived negative impacts of the legislation [ 00:18:14 ] .

Participants

Transcript

Welcome to order.  A quorum is present.  The committee meets today pursuant to notice to consider five bills.  The chair announces that requests for recorded votes may be postponed pursuant to Clause 2 of Rule 11 of the Rules of the House of Representatives and Committee Rule 14B.  Without objection, the chair may recess the committee at any point.   Today the Committee will be marking up five important pieces of legislation.  H.R.  1319, the Modern Worker Empowerment Act, supports independent contractors by clearly defining the line between employee and independent contractor under the Fair Labor Standards Act.   and the National Labor Relations Act.  As expert witnesses have told the Subcommittee on Workforce Protections, many businesses have experienced administrative whiplash from regulatory changes affecting independent workers.   The Modern Worker Empowerment Act will provide certainty for many businesses and independent contractors by using a similar framework that the Trump Department of Labor finalized in 2021.  I'd like to thank the American Trucking Associations for their strong support and acknowledge the independent workers who came to join us here today.  We'll also consider HR 1320, the Modern Worker Security Act,   This legislation will provide a safe harbor for businesses offering certain benefits to independent contractors, which are usually reserved for W-2 employees.  The government should avoid creating fear and uncertainty among independent contractors   about reclassification as employees, especially because the vast majority of these workers have made it clear they do not wish to become employees.  This bill will remove illogical disincentives to providing independent workers with benefits.
I'd like to thank Congressman Kiley for leading both these bills and for his expertise and passion on this issue.   The next bill authored by Congressman Comer is H.R.  4366, the Save Local Businesses Act, which protects the opportunity for all workers to pursue the American dream.  Specifically, this legislation will set one common sense joint employer test so that job creators will have clarity about the law of what the law is and certainty for the future.   For too long, we have allowed the National Labor Relations Board and DOL to determine their respective joint employer tests, resulting in tests that change with every presidential administration.  The Biden-Harris administration's Joint Employer Standard created immense uncertainty and imposed massive costs on thousands of businesses nationwide.   The local business act will reverse the damage done by the Biden-Harris administration and allow Americans, especially Americans in the franchise industry, to start and grow their businesses without fear or uncertainty.   We'll next consider HR 4312, the Student Compensation and Opportunity Through Rights and Endorsement Act, led by Representative Gus Bilirakis, House Republican Conference Chairwoman Lisa McClain as well, whose work on this issue is much appreciated, myself and many others.  The SCORE Act, a bipartisan bill, brings much needed stability to college athletics.   Since the NCAA lifted name, image, and likeness and transfer rules in 2021, college athletics have been in a period of chaos as constant litigation and efforts to classify student athletes as employees jeopardize thousands of academic and athletic opportunities.
Thank you, Mr. Chairman.  Mr. Chairman, today we will consider five bills, four of which I'm concerned conflict with the priorities of American workers.  Now, after passing the one big, ugly law which sacrifices health coverage for over 10 million Americans to pay for tax cuts for the ultra-wealthy, committee Republicans are now seeking to advance a number of bills which would make it harder for Americans to make ends meet and care for themselves and their families.   The first two bills we'll consider, H.R.  1319 and 1320, will create more loopholes for employers to skirt their responsibility to provide fair play, safe working conditions, and employee benefits.  The H.R.  1319, the so-called Modern Worker Empowerment Act, amends the Fair Labor Standards Act and the National Labor Relations Act to establish a single and far too narrow test to determine whether an individual is an independent contractor   or an employee.  By narrowing the scope of the FLSA and the NLRA, this bill makes it more difficult for workers who have been misclassified as independent contractors to receive overtime pay, fair wages, and other basic rights under the law.   I cannot overstate the harm this bill will inflict on workers and communities alike.  By codifying the pervasive trend of employers to misclassify their employees as independent contractor, this bill strips workers of their basic wage and hour protections and leaves law-abiding businesses at a competitive disadvantage.   Independent contractors do not get the same protection and benefits as employees, such as minimum wage, overtime, unemployment compensation, workers' comp, access to employee health care and pensions, OSHA protection, and the right to organize.  And also, this bill would rob state and local governments of revenue at a time when states must deal with devastating health and food assistance cuts due to the president's one big ugly law.

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