21st Century Worker Act

This bill, titled the 21st Century Worker Act, establishes a new federal framework for classifying service providers as either employees or independent contractors. It creates specific criteria for mandatory employee classification, such as substantial economic relationships where workers are required to work full-time, and mandatory independent contractor status for licensed professionals, business entities, and those with limited economic relationships. For situations that do not fit these categories, the bill allows service providers to elect their own classification through a written agreement signed by both parties. The legislation also updates definitions of employee and employer in major federal laws including the Fair Labor Standards Act, National Labor Relations Act, and Internal Revenue Code, and requires annual reviews of worker classifications to ensure they remain accurate.