Cutting red tape for 64 million American workers

May 30, 2025 by AFP

The American workforce is changing fast — and Washington isn’t keeping up.

Across America, more than 64 million people are freelancing — either for extra income or as a career. But federal policies and outdated rules are making it harder for Americans to work independently if they want to.

Whether part-time or full-time, independent work offers flexibility, freedom, and opportunity that traditional jobs often can’t match. For many workers and families, this freedom isn’t just a preference — it’s a lifeline.

The House Workforce Protections Subcommittee recently held a hearing to examine the obstacles faced by independent contractors. Central to the conversation were two promising new bills backed by Americans for Prosperity to remove some of these roadblocks.

Despite government-imposed barriers and unnecessary red tape, independent contractors remain a driving force in the American economy.

Imagine what they could achieve if the government got out of the way.

STREAMLINING EMPLOYMENT CLASSIFICATION RULES

One of the most basic questions in any job is: Are you an employee or an independent contractor? The answer isn’t as straightforward as you’d think.

The rules that determine a worker’s classification are outdated, confusing, and inconsistent. And it’s not just one set of rules — it’s a mess of state laws, court decisions, and changing government regulations that shift depending on who’s in power.

This classification matters. Businesses that rely on contractors to provide specialized services face the constant threat of being penalized for misclassification. That can mean steep fines, back pay, and even legal action.

When classification rules are too subjective or too rigid, they can effectively force freelancers into employment arrangements they don’t want — undermining their freedom and income.

H.R. 1319, the Modern Worker Empowerment Act, would simplify classifications by creating a clear and consistent standard for employment. Workers would finally have a reliable way to know where they stand without fear that the rules will change overnight.

EXPANDING HEALTH CARE ACCESS FOR ALL WORKERS

Another barrier American workers face is that current federal laws make it difficult — or even illegal — for companies to offer benefits like health care to independent contractors.

That’s not just unfair; it’s harmful.

Many business clients would like to offer benefits to independent contractors, but doing so can force them to reclassify those workers as employees — triggering significant financial penalties and regulatory burdens.

Independent workers are 11% less likely to have the benefits traditional employees receive. Not because they don’t want them, but because Washington is getting in the way.

H.R. 1320, the Modern Worker Security Act, would eliminate this double standard and make it easier for companies to offer benefits to independent workers.

KEEP FREEDOM ALIVE. JOIN THE MOVEMENT

Americans and freedom are a perfect match.
We don’t want the government dictating every aspect of our lives. Unelected bureaucrats have no role in deciding how everyday Americans should do their work.

That’s why at Americans for Prosperity, we’ve always supported the right of workers to choose what type of work best suits them, and bills like the Modern Worker Empowerment Act and the Modern Worker Security Act do just that.

If you want to learn more about this issue, click here for a recap of the House Workforce Protection Subcommittee hearing.

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