Bills of Congress by U.S. Congress

H.R.100 - Protect the Gig Economy Act of 2025 (119th Congress)

Summary

H.R.100, the "Protect the Gig Economy Act of 2025," aims to amend Rule 23 of the Federal Rules of Civil Procedure. The bill seeks to shield gig economy companies and small businesses relying on contractor services from class action lawsuits related to worker misclassification. It proposes adding a clause to Rule 23(a) that would prevent class action claims alleging the misclassification of employees as independent contractors.

Expected Effects

The primary effect of this bill, if enacted, would be to limit the ability of gig workers to pursue class action lawsuits against companies for allegedly misclassifying them as independent contractors rather than employees. This could lead to reduced legal costs for gig economy companies. It may also shift the burden to individual workers to pursue claims, potentially weakening their legal position.

Potential Benefits

  • Reduced litigation costs for gig economy companies and small businesses.
  • May encourage investment and innovation in the gig economy sector.
  • Could provide more certainty for businesses regarding worker classification.
  • Potentially simplifies legal processes by reducing class action lawsuits.
  • May lead to more flexible business models and service offerings.

Potential Disadvantages

  • Reduced legal recourse for gig workers who believe they have been misclassified.
  • Potential erosion of worker protections and benefits typically associated with employee status.
  • May exacerbate income inequality and job insecurity for gig workers.
  • Could lead to a decline in working conditions and labor standards in the gig economy.
  • May shift the burden of legal action to individual workers, who may lack the resources to pursue claims effectively.

Constitutional Alignment

The bill's constitutional alignment is complex. While Congress has the power to regulate interstate commerce (Article I, Section 8), the potential impact on worker rights raises concerns. The bill does not directly infringe on any specific constitutional right, such as freedom of speech (Amendment I) or the right to bear arms (Amendment II). However, the long-term effects on economic fairness and worker protections could be debated in relation to the Constitution's broader goals of promoting the general welfare.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).