Sponsor
Andrew S. Biggs
Representative · R-AZ
Representative · R-AZ
The bill reduces employers' exposure to classwide misclassification suits by forcing more individualized pre-certification inquiries, at the cost of making it harder and more expensive for gig and contract workers to obtain collective remedies and increasing judicial workload.
Employers (including small-business owners and tech companies) will face fewer large class-action lawsuits over worker misclassification, reducing potential class litigation exposure and expected defense and settlement costs.
Federal courts will require more individualized factual assessment before certifying misclassification classes, which shifts attention to the merits earlier and may limit improper or overbroad class certifications.
Gig and contract workers (including freelance and low-income individuals) will have a harder time pursuing collective relief for widespread misclassification, reducing their ability to obtain classwide remedies such as back pay and benefits.
Individual workers will likely face higher litigation costs and more inconsistent outcomes because claims must proceed individually rather than as a class, which can lower average recoveries for similarly situated workers.
Courts (and state/local governments that rely on them) will incur added pre-certification factual inquiries, increasing judicial workload and potentially causing longer case timelines and delays.
Based on analysis of 2 sections of legislative text.
Prevents federal class certification when a plaintiff’s claim alleges misclassification of employees as independent contractors.
Amends the Federal Rules of Civil Procedure to block federal class actions when the plaintiff’s claim alleges that workers were misclassified as independent contractors rather than employees. The bill adds a new Rule 23(a) requirement that courts must find the plaintiff’s claim does not rest on an allegation of misclassification before certifying a class, effectively excluding misclassification claims from classwide treatment in federal court.
Official title: To amend Rule 23 of the Federal Rules of Civil Procedure to protect the "gig economy" and small businesses that operate in large part through contractor services from the threat of costly class action litigation, and for other purposes.
Introduced January 3, 2025 by Andrew S. Biggs · Last progress January 3, 2025