Woosley Tries Again With HR 3178
Last month, Representative Lynn Woolsey (D- CA) introduced H.R. 3178, The Employee Misclassification Prevention Act. The Act looks to amend the Fair Labor Standards Act of 1938 to require persons to keep records of non-employees who perform labor or services for remuneration and to provide a special penalty for persons who misclassify employees as non-employees, and for other purposes.
The bill is the latest effort from Congresswoman Woolsey aimed at tackling the worker misclassification problem. She had previously sponsored bills in the last two congressional sessions that were introduced but did not clear the committee stage. This latest action is the second congress sponsored misclassification bill to be unveiled this year. The first was S. 770, The Payroll Fraud Prevention Act which was introduced in April.
Previous Attempts Have Failed
Congress’ previous attempts at fighting worker misclassification have failed with bills that were created late in the sessions. In turn, the late start made it impossible to garner enough steam to make it through the legislative process. With H.R. 3178 and S. 770 being introduced earlier in the session, there is optimism that these bills will not follow the paths of their predecessors. Not only is the early introduction helpful in pushing these bills along but awareness around misclassifying workers has recently heightened with the IRS and various states taking action on the matter.
You have to credit Congresswoman Woolsey for being persistent in trying to properly classify independent contractors. In doing so, she’s made it known that she’s fighting for workers’ minimum wage, overtime and worker’s compensation rights. Not to mention tapping into a revenue stream with huge potential. Whether or not Congress views it in the same manner depends on whether the time is right to roll out legislation that could potentially hinder job progress in a struggling economy.
Unfortunately we won’t know the outcome of this latest bill until the end of the legislative session but please continue to check back with us as we post updates.
