This bill restricts states from taxing the income of individuals who live in one state but work remotely for employers located elsewhere. It establishes that a state can only tax an individual's compensation if they are physically present within that state during the time the work is performed, preventing taxation based on where the employer is headquartered. The legislation specifically prohibits states from using "convenience of the employer" tests to claim taxing rights over workers who are physically located in another jurisdiction. These rules apply immediately upon enactment and affect nonresident employees and independent contractors, while leaving corporate taxes and unearned income regulations unchanged.
This bill, titled the Protecting Independent Contractors from Discrimination Act of 2026, aims to extend federal anti-discrimination protections to individuals who work under independent contracts. It directly affects independent contractors by legally classifying them as employees under several major federal laws, including Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act. The key mechanism involves amending the definitions of "employee" or "applicant for employment" within these existing statutes to explicitly include independent contractors. Consequently, independent contractors would gain the same legal recourse against discrimination based on race, age, disability, genetic information, and other protected categories as traditional employees.
The Restoring Justice for Workers Act prohibits employers from requiring workers to sign agreements that force them to resolve disputes through individual arbitration rather than in court or as part of a group. It bans retaliation against employees who refuse to arbitrate and mandates that any post-dispute arbitration agreements be truly voluntary, requiring plain language explanations, a 45-day waiting period, and written consent. The bill also amends the National Labor Relations Act to make it illegal for employers to enter into or enforce contracts that prevent workers from joining together to file joint or class-action lawsuits regarding workplace rights. These changes apply to all workers, including independent contractors, and take effect immediately upon enactment.
This bill requires publicly traded companies and certain government agencies to report quarterly data on how artificial intelligence affects their U.S. workforce. Specifically, these organizations must disclose the number of employees laid off due to AI automation, new hires resulting from AI integration, unfilled positions caused by AI, and individuals receiving AI-related retraining. The Department of Labor will collect this information, analyze the net impact of these changes, and publish the reports on its website while also submitting them to Congress. Additionally, the bill establishes a process for the Department of Labor to determine which non-publicly traded companies should be included in these reporting requirements based on factors like company size and industry.
This bill establishes federal rules to protect workers who use earned wage access services, which allow employees to receive a portion of their pay before their regular paycheck date. It requires providers to always offer a free option for accessing wages alongside any paid options and mandates clear, upfront disclosures about fees, access limits, and the voluntary nature of any tips. The legislation also prohibits providers from sharing fees with employers, using debt collection tactics to recover unpaid amounts, or discriminating against consumers based on protected characteristics. Additionally, the bill prevents providers from treating these services as credit or loans under federal law and gives the Consumer Financial Protection Bureau authority to create specific regulations within 180 days of enactment.
The National Commission to Combat Workplace Sexual Harassment Act establishes a temporary commission to investigate and study workplace sexual harassment, sexual assault, and other misconduct across various industries. This independent body will gather testimony from workers, experts, and advocates to analyze causes, reporting mechanisms, and the effectiveness of current laws, with a specific focus on how factors like race, gender identity, and gig economy work affect vulnerability. Composed of eleven appointed members who serve without pay, the commission is required to submit a comprehensive report with recommendations to the President and Congress within 18 months and hold a public hearing on those findings. The commission will have access to federal resources and staff support but will cease to exist 60 days after submitting its final report.
The Gig Is Up Act requires large companies with over $100 million in annual revenue and at least 10,000 independent contractors to withhold taxes from payments made to these workers. This provision treats the earnings of these specific contractors as wages for Social Security purposes, effectively doubling the employer's portion of the tax on their behalf. The law applies to payments made after December 31, 2026, and includes rules for grouping related businesses together to determine if they meet the size thresholds.
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.
This bill creates a tax deduction for certain reported cash tips received by workers in occupations that traditionally rely on tips, such as servers and bartenders. It allows a deduction of up to $35,000 per year for tips reported to employers (e.g., via Form 4137), but phases out for individuals earning over $50,000 annually (single) or $100,000 (joint). The deduction requires a Social Security number and applies only to taxable years starting in 2026 through 2028, with a Treasury pilot program to evaluate extending it permanently. It excludes tips from occupations not traditionally tip-based and mandates annual reviews of living wage thresholds.
HR 5423, the Predatory Truck Leasing Prevention Act of 2025, would ban truck companies from using lease-purchase agreements that trap drivers in debt without building equity. It requires the federal government to create new rules within one year to prohibit "predatory" programs where carriers control drivers' work, pay, and debt while denying drivers ownership of the truck. Drivers who signed such agreements after the new rules take effect could seek relief if the terms violated the regulations. This directly affects truck drivers in lease-purchase programs and the trucking companies that use them.
