21st Century Worker Act

The 21st Century Worker Act establishes a new classification system for service providers, determining whether they are employees or independent contractors under federal law. It creates specific criteria for mandatory classification (such as substantial economic relationships for employees or licensed professions for independent contractors) and allows some service providers to elect their classification with written agreements requiring counter-signatures from service recipients. The bill amends key federal laws including the Fair Labor Standards Act and tax code to align with these new definitions, imposing penalties for non-compliance with classification requirements. This affects workers and businesses across various industries who provide services for compensation, changing how they're treated under labor and tax laws. The legislation also requires a GAO study to identify other federal laws that need to be updated to match these new definitions.