To amend the Fair Labor Standards Act of 1938 and the National Labor Relations Act to clarify the standard for determining whether an individual is an employee, and for other purposes.

This bill sets a clear test for who counts as an employee versus an independent contractor under federal labor laws, including minimum wage, overtime pay, and union rights. These protections apply only to employees, not independent contractors.

A person would be treated as an independent contractor if both are true: the hiring entity does not control the details of how the work is done, and the worker has real chances to operate like a small business—using their own judgment and taking business risks. The bill also says certain things cannot be used to call someone an employee, such as requiring the worker to follow the law, meet stricter safety rules, carry insurance, or meet contract deadlines. The same test would apply for union-related rights under the National Labor Relations Act.

• Who is affected: Workers and businesses that use independent contractors.
• What changes: A single, two-part test for contractor status, plus a list of factors that cannot be used to claim someone is an employee; the test is used under both wage-and-hour and labor-relations laws.