GIG Act

HR 781, the GIG Act, clarifies the definition of an independent contractor under federal law. It adds specific factors the Secretary of Labor must consider when determining if a worker is an independent contractor, such as whether the worker has substantial control over their work, can earn profits or losses based on their initiative, and whether their services require specialized skills performed continuously. The bill explicitly states that the Secretary cannot consider unmet contractual terms or unrelated services when making this determination. This directly affects workers classified as independent contractors and the businesses that hire them, by establishing a clearer, more objective standard for classification. The change aims to reduce misclassification disputes under the Fair Labor Standards Act.