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H.R. 1319, known as the "Modern Worker Empowerment Act." While proponents argue that this bill will empower workers and protect small businesses from "bureaucratic overreach" by making it easier for individuals to work as independent contractors, there are significant criticisms and concerns about what could be "bad" about HR1319-2025: Negative Impacts of HR1319-2025 (Modern Worker Empowerment Act): Worker Misclassification and Reduced Protections: Critics, such as the Mechanical Contractors Association of America (MCAA), argue that the bill would reduce the "test" for employment status to a "significant control" standard, making it easier to classify more workers as independent contractors. This could lead to a widespread increase in worker misclassification, particularly in industries like construction and mechanical contracting. When workers are misclassified as independent contractors, they lose crucial employee protections and benefits, including: Minimum wage and overtime pay: Independent contractors are not subject to FLSA minimum wage and overtime requirements. Workers' compensation: They typically don't receive workers' compensation benefits for work-related injuries. Unemployment insurance: They are generally not eligible for unemployment benefits. Employment taxes: Employers can evade their obligations to pay employment taxes (e.g., Social Security and Medicare contributions). Right to organize/collective bargaining: Independent contractors are not covered by the NLRA, thus losing the right to form unions and bargain collectively. Unfair Competition for Law-Abiding Businesses: Legitimate businesses that correctly classify their employees and adhere to labor laws would be at a significant competitive disadvantage. Unscrupulous competitors could use the loosened standards to cut costs by avoiding employee-related expenses, leading to a "race to the bottom" in terms of worker treatment and wages. Impact on Public Programs and Taxpayers: Worker misclassification can lead to substantial shortfalls in state workers' compensation programs, state unemployment insurance programs, and federal Social Security and Medicare taxes. This ultimately shifts the burden to American taxpayers to make up for these shortfalls in public programs. Increased Use of Undocumented Labor: Treating workers as independent contractors can eliminate the obligation for businesses to confirm an individual's employment authorization, potentially facilitating the exploitation of undocumented immigrant labor. Erosion of "Family-Sustaining Work": Concerns have been raised that this bill could accelerate a trend where work in skilled trades no longer provides a family-sustaining income in many markets, making it harder to attract and retain a skilled workforce. In summary, while proponents frame HR1319 as "worker empowerment," critics contend that its primary effect would be to undermine long-standing employee protections, create an uneven playing field for businesses, and potentially harm workers and taxpayers by facilitating widespread misclassification and the associated avoidance of labor law obligations.