Schools must treat contractors like employees for health coverage.
H.R. 3590 — SCHOOL Professionals Act of 2025 · Filed by Steven Horsford (D-NV) · 3 cosponsors · Introduced May 23, 2025 · Referred to committee
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What it does
This bill amends the tax code to clarify that contractors who primarily provide services to schools and educational organizations must be treated like employees when determining whether employers must provide health coverage. Currently, the rules for when employers must offer health insurance to full-time workers may treat school contractors differently; this bill requires that contractors working primarily for educational organizations follow the same full-time employee rules as regular school employees.
Why we flagged it
The bill narrows the scope of contractor vs. employee classification for health-coverage purposes in the educational sector, making the rule more uniform and potentially expanding coverage obligations.
What the text implies
- Educational organizations may face increased payroll tax liability if contractors are reclassified as full-time employees for ACA purposes, potentially triggering employer mandate penalties.
- The rule applies only to contractors 'primarily' serving educational orgs—ambiguity around 'primarily' may create compliance disputes and litigation over threshold percentages.
The full analysis lists 4 implications of this text.
Who stands to gain
Contractors working primarily for educational organizations (potential access to employer health cov; Health insurance carriers (expanded covered population)