Sec. 2. Worker flexibility agreements
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Section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 ) is amended— in subsection (e), by adding at the end the following: Except as provided in subparagraph (B), the term employee does not include any individual who has entered into a worker flexibility agreement with an entity during the duration of such worker flexibility agreement. For the purposes of sections 3(l), 12, and 13(c), and paragraphs
(3)and
(4)of section 15(a), the term employee includes an individual described in subparagraph (A). ; and by adding at the end the following: The term worker flexibility agreement means an arrangement— that is knowingly and voluntarily entered into by an entity and an individual before work begins, in accordance with paragraph (2); under which— the individual retains the rights provided to employees in connection with other workplace laws, including those relating to individual employee privacy rights, nondiscrimination, nonharassment, nonretaliation, safety, and leave under the Family and Medical Leave Act, in accordance with applicable laws; the individual retains the freedom and flexibility to reject offers the entity provides to the individual to provide services or results without negatively impacting the individual’s opportunity to provide services to the entity in the future during the arrangement's term; and the individual retains the right to perform the same services or results as the services or results provided under the arrangement to competing businesses, unless part of a bargained-for non-solicitation sales agreement; that specifies that the individual entering into the agreement— will not be treated as an employee for Federal tax purposes with respect to services performed pursuant to the agreement during the period during which the agreement is in effect; and has not been treated as an employee for Federal tax purposes with respect to the same or similar services performed at any time during the calendar year in which such agreement is entered into by the individual and the entity; that may include other requirements, if agreed to by the individual and the entity; that is affirmed in writing and that— states the entity has offered, and the individual has chosen to enter into, an arrangement whereby the individual is not subject to the minimum wage and overtime protections of this Act and is not treated as an employee under the Internal Revenue Code of 1986 (and related State and local laws); and includes a statement of all of the rights and requirements described subparagraphs
(B)and (C); and that is for a defined period of time and that may be renewed or renegotiated by the individual and the entity following its expiration in accordance with the requirements of this section. For the purposes of this subsection, an agreement described in paragraph
(1)shall not be considered to be entered into knowingly and voluntarily unless the agreement— is written in plain language in a manner that can be understood by the average individual eligible to participate; specifically refers to rights or claims under this Act; advises the individual in writing of their right to consult with others, including an attorney, prior to signing the agreement; confirms that the individual has been provided with a written summary of health, pensions, insurance (including accident or other occupational health products), training, and certification programs, or other benefits, if any, that the individual is eligible for while the agreement is in effect; and includes the signature of the individual and a representative of the entity. .
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Sec. 2
Worker flexibility agreements
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