Bill rewrites worker protections using vague 'common law' standard
S. 2228 — Modern Worker Empowerment Act · Filed by Tim Scott (R-SC) · 2 cosponsors · Introduced Jul 9, 2025 · Referred to committee
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What it does
This bill rewrites the federal definition of 'employee' under the Fair Labor Standards Act to use common law rules instead of the current statutory test. It would shift millions of workers classified as independent contractors under modern labor law back to common law standards, potentially reclassifying many as employees entitled to minimum wage, overtime, and other protections—or conversely, allowing employers to argue that fewer workers qualify as employees under a narrower common law reading.
Why we flagged it
The bill's operative mechanism is a wholesale replacement of the statutory employee definition with common law standards. This is functionally a deregulation of employment classification—it shifts the legal burden and standard in a direction historically favorable to independent contractor status and away from worker protections.
What the text implies
- The 'usual common law rules' standard is not defined in this bill and will require courts to interpret what 'common law' means in 2025—creating years of litigation and uncertainty while workers' status hangs in the balance.
- Gig economy platforms (Uber, DoorDash, Lyft, etc.) would gain a legal pathway to argue their workers are independent contractors under common law, potentially exempting them from state and federal wage/hour laws.
The full analysis lists 5 implications of this text.
Who stands to gain
gig economy platforms (Uber, Lyft, DoorDash, etc.); staffing and temp agencies; franchise systems