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HR 1319

In memory of Milburn Walter Dearing of Boerne.

89th Legislature (2025) Introduced by Ellen Troxclair

Amends FLSA to define independent contractor via a two-part test: no significant control and true entrepreneurial risk; lowers protections, reclassifies workers.

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Bill Summary · HR 1319

Summary — H.R. 1319 (Introduced Feb 13, 2025) — “In memory of Milburn Walter Dearing of Boerne.”

Note on title vs. text: The bill is titled and classified as a memorial resolution (“In memory of Milburn Walter Dearing of Boerne.”). However, the text supplied amends the Fair Labor Standards Act (29 U.S.C. 203(e)) to define independent contractor status. This summary treats the substantive text provided (the FLSA amendment) as the operative policy content to explain the bill’s effects, and flags the discrepancy between the title/classification and the amendment language.

Purpose and intent

The text’s clear intent is to amend the Fair Labor Standards Act’s definition of “employee” and to establish a statutory definition and safe-harbor criteria for when an individual is an independent contractor (i.e., not an employee). The goal is to make contractor status depend primarily on control over work details and entrepreneurial characteristics, and to bar several common factors from being used to prove employee status.

Key provisions

  • Reorganizes Section 3(e) of the FLSA by redesignating existing paragraphs (technical).
  • Inserts a new paragraph establishing criteria for independent-contractor status:
    • Two-part gateway test to be considered an independent contractor:
    • The hiring party does not exercise significant control over the details of how the work is performed (regardless of control over the final result).
    • The individual has the opportunities and risks inherent in entrepreneurship — e.g., discretion to exercise managerial skill, business acumen, or professional judgment.
    • Prohibits use of the following factors to determine that an individual is an employee:
    • Requirement to comply with legal, statutory, or regulatory requirements.
    • Requirement to comply with health and safety standards more stringent than otherwise applicable.
    • Requirement to carry insurance of any kind.
    • Requirement to meet contractually agreed-upon performance standards, such as deadlines.

Who would be affected

  • Workers: Gig workers, independent contractors, freelancers, consultants — more workers could meet the statutory test for contractor status.
  • Employers/platforms: Businesses that use contract labor (ride‑sharing, delivery, professional services, construction subcontracting, etc.) would gain clearer statutory support for classifying individuals as contractors.
  • Government/enforcement bodies: DOL, courts, IRS, state agencies, and agencies administering unemployment insurance, workers’ compensation, and tax withholding could see impacts in enforcement and adjudication.
  • Social programs and revenues: Potential reductions in payroll tax collections, unemployment insurance, and employer-provided benefits obligations if more workers are classified as contractors.

Potential impact and legal interactions

  • Lowers the emphasis on certain traditional factors (e.g., compliance requirements, deadlines) that federal adjudicators have used to find employee status; could shift many workers out of FLSA protections (minimum wage, overtime) and related employer obligations.
  • Could create friction with existing multi‑factor “economic reality” tests used by courts, the IRS, and state laws, leading to litigation over preemption and interpretation.
  • May affect state-level worker-protection initiatives and have fiscal effects on payroll tax and benefit systems.

Procedural status and sponsors

  • Introduced: Feb 13, 2025; referred to House Committee on Education and Workforce.
  • Committee actions: Markup and ordered to be reported (in the nature of a substitute) July 23, 2025 (vote 19–16).
  • Floor/house actions recorded: Placed on Congratulatory & Memorial Res. Calendar; laid before the House, adopted, and reported enrolled (June 1, 2025).
  • Primary sponsor: Rep. Kevin Kiley. Multiple cosponsors including Brandon Gill, Tim Burchett, Julia Letlow, and others.
  • Related/companion bill: H.R. 4154.

If you want, I can:
- Draft a plain‑language explainer of how this would change independent-contractor classification in common industries, or
- Compare this statutory test to the current “economic reality” test used in federal courts and by the DOL.

Compiled from official sources — confirm details with the bill’s official record.

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