The Harmonization of Coverage Act, H.R. 3825, would bring much needed clarity to the definition of the term “employee,” and increase opportunities for independent entrepreneurs.
In a recent interview with Forbes Contributor Jared Meyer, Representative Elise Stefanik (R-NY) discusses her support for the bill. In response to a question about why she prioritized H.R. 3825, Rep. Stefanik said:
The federal government has done independent contractors a disservice by creating a muddied legal framework that opens up companies to enormous financial liability if they are determined to have misclassified workers. This complicated legal mess discourages larger companies from doing business with independent workers.
Currently, there are at least ten different tests defining the term “employee” for purposes of state and federal statutes. To bring clarity to the “muddied legal framework,” Representative Stefanik and Representative Diane Black (R-TN) introduced the Harmonization of Coverage Act, which would harmonize the definition of the term “employee” for purposes of federal statutes.
Click Here for a copy of the interview.