Summary: S.4738 — 116th Congress (2019-2020)All Information (Except Text)

There is one summary for S.4738. Bill summaries are authored by CRS.

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Introduced in Senate (09/24/2020)

Worker Flexibility and Small Business Protection Act of 2020

This bill classifies certain workers as employees, permits employees to request work schedule flexibility, expands oversight mechanisms for certain labor protections, requires employers to post compliance ratings, and provides standards for interpreting and applying certain worker rights.

First, the bill provides that workers only may be classified under various labor laws as independent contractors, and not employees, in specified circumstances. It also permits employees to continue, or request, work schedule flexibility.

The bill also defines the term multiple employers under various labor laws and makes parent companies responsible for the labor requirements of subsidiary employers. Certain owners, officers, and managers of companies may be assessed civil penalties for violations of certain labor laws; the 10 largest shareholders of employers also may be jointly liable for damages and civil penalties against such employers. Employers also are responsible for the labor protections of employees provided through staffing companies (e.g., temporary employees), including providing wages comparable to direct employees performing similar work.

Additionally, employers must post a rating of their compliance with applicable labor laws as determined by the Department of Labor.

Finally, the bill requires that specified labor laws are interpreted to include as employees workers or individuals claiming such classification. Further, agencies may not take actions to reduce employee protections under such laws without approval by Congress, and the bill provides standards of interpretation for judicial review.