Modern Worker ACT – California FREELANCERS Rejoice!

California’s freelancers see a glimmer of hope amid the state’s restrictive regulatory landscape as the Modern Worker Empowerment Act emerges to potentially shield their independent contractor status.

At a Glance

  • Republican Congressman Kevin Kiley introduced the Modern Worker Empowerment Act to protect independent contractors from inconsistent regulations
  • California’s AB5 law has already restricted freelance work in the state, similar to federal proposals in the PRO Act
  • Nearly 60 million independent contractors make up approximately one-third of the U.S. workforce
  • Freelance advocates, including Kim Kavin, are fighting for stable classification standards through legislation and lawsuits

The Regulatory Challenge for California Freelancers

Independent contractors in California have faced significant hurdles since the implementation of Assembly Bill 5 (AB5), which took effect on January 1, 2020. This legislation adopted the restrictive “ABC test” for determining worker classification, fundamentally changing how freelancers operate in the state. Under this test, workers are presumed to be employees unless hiring entities can prove otherwise by satisfying three specific conditions related to control, work nature, and independent business establishment. The burden of proof rests heavily on companies, causing many to avoid hiring California-based freelancers altogether.

The ABC test is particularly challenging because it requires all three conditions to be met simultaneously. If any single element fails, the worker must be classified as an employee rather than an independent contractor. This creates a significant barrier for many legitimate freelance professionals who prefer independence but don’t meet the strict letter of the test. While exemptions exist for certain occupations, many freelancers remain caught in this regulatory web, facing income loss and career uncertainty.

Hope Through Federal Legislation

As California freelancers struggle with state regulations, a potential solution has emerged at the federal level through the Modern Worker Empowerment Act. Introduced by Republican Congressman Kevin Kiley, the legislation aims to provide stability for independent professionals amid changing Department of Labor leadership and policies. With approximately 60 million independent contractors comprising about one-third of the U.S. workforce, the stakes are particularly high. The act would create a more reliable framework for classifying workers, potentially overriding state restrictions.

“There is no greater champion than Kevin Kiley for independent contractors in the United States Congress. He is a superhero. He has been trying to stop this freelance busting madness”, says Kim Kavin

The legislation comes at a critical time as the Department of Labor undergoes leadership changes that could impact freelancer classifications. The Biden administration’s rule on “misclassification” of independent workers has been particularly concerning for freelancers who fear it could restrict their ability to work independently if not repealed. This federal rule mirrors many of the same challenges already experienced by California freelancers under AB5, potentially extending California-style restrictions nationwide without legislative intervention.

The Fight for Freelancer Rights

Freelance advocates aren’t waiting passively for political solutions. Kim Kavin, Founder of Fight For Freelancers, is actively involved in a lawsuit against the Biden administration’s independent contractor rule while simultaneously supporting legislative efforts. The lawsuit challenges the Department of Labor’s authority to implement such sweeping changes to worker classification standards without congressional approval. Meanwhile, advocates are closely watching new Labor Department leadership for signs of policy shifts that could affect freelancer status.

“Sonderling’s testimony suggested that the administration may be open to reassessing the independent contractor rule”, concludes Kavin

Keith Sonderling, Undersecretary of the Department of Labor, has emerged as a potential ally to freelancers, with recent congressional testimony suggesting openness to reconsidering current classification rules. This has given freelance advocates cautious optimism that regulatory relief may be possible through administrative action, even as they continue to push for more permanent legislative protections. For California freelancers specifically, federal action could potentially preempt some of the more restrictive aspects of AB5.

The Path Forward

As California freelancers continue navigating the complex regulatory landscape, the Modern Worker Empowerment Act represents their strongest hope for long-term stability. Congressional action would provide the most durable solution by establishing clear, consistent standards for independent contractor classification that wouldn’t shift with each new administration. Without such legislation, freelancers remain vulnerable to regulatory interpretation changes that can dramatically impact their livelihoods with little notice or recourse.

For the millions of California professionals who choose independent work for its flexibility, autonomy, and economic opportunity, the resolution of these classification issues represents more than policy debate—it determines their ability to earn a living on their own terms. As regulatory tensions continue between state and federal authorities, freelancers remain caught in the middle, hopeful that the Modern Worker Empowerment Act might finally provide the certainty and recognition their profession deserves.

RELATED ARTICLESMORE FROM AUTHOR