What This Bill Does
This bill changes federal child labor laws to cover independent contractors (people who work for themselves), not just employees. It also increases penalties for breaking child labor laws and makes the penalties adjust automatically each year based on inflation.
##
Who It Affects
- Independent contractors under 18 years old
- Employers who hire independent contractors
- People who repeatedly or willfully violate child labor laws
- The federal government agencies that enforce these laws
##
Key Provisions
- The definition of "employer" now includes any person who engages an independent contractor to do work, for purposes of child labor laws (Sec. 2(a)(1))
- Civil penalties for first child labor violations increase to a range of $5,000 to $132,270, and penalties for repeat or serious violations increase to $25,000 to $601,150 (Sec. 2(b))
- These penalty amounts increase automatically every year starting in fiscal year 2024 based on the consumer price index, which measures inflation (Sec. 2(b))
- Anyone who repeatedly or willfully violates child labor laws can be fined up to $50,000 or imprisoned for up to one year or both (Sec. 2(c))
##
What Changes
If this bill becomes law, independent contractors will receive the same child labor protections that employees currently have. Companies that break child labor laws will face higher fines that automatically increase each year. People who repeatedly break child labor laws face possible criminal penalties including jail time.
##
Important Definitions
- "Work" means performing services for payment, including both employment and independent contracting (Sec. 2(a))
- "Worker" means any individual, including an independent contractor or employee, who is engaged to work by an employer (Sec. 2(a))
##
Effective Date
The changes to who is covered by child labor laws take effect 90 days after the bill becomes law. The changes to penalties apply to violations that occur on or after the date the bill becomes law. (Sec. 3)
II
118TH CONGRESS
1ST SESSION
S. 637
To amend the Fair Labor Standards Act of 1938 to apply child labor
laws to independent contractors, increase penalties for child labor law
violations, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 2, 2023
Mr. SCHATZ (for himself, Mr. FETTERMAN, Mr. DURBIN, Ms. CORTEZ
MASTO, Ms. BALDWIN, and Ms. DUCKWORTH) introduced the following
bill; which was read twice and referred to the Committee on Health, Edu-
cation, Labor, and Pensions
A BILL
To amend the Fair Labor Standards Act of 1938 to apply
child labor laws to independent contractors, increase pen-
alties for child labor law violations, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Child Labor Preven-
4
tion Act’’.
5
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•S 637 IS
SEC. 2. AMENDMENTS TO THE FAIR LABOR STANDARDS
1
ACT OF 1938.
2
(a) APPLICATION TO WORKERS.—The Fair Labor
3
Standards Act of 1938 (29 U.S.C. 201 et seq.) is amend-
4
ed—
5
(1) in section 3 (29 U.S.C. 203)—
6
(A) in subsection (d)—
7
(i) by striking ‘‘ ‘Employer’ includes’’
8
and inserting ‘‘(1) ‘Employer’ includes’’;
9
(ii) by inserting ‘‘(or, for purposes of
10
any child labor provision of this Act, in-
11
cluding paragraph (2), subsection (aa),
12
section 12, and any provision of this Act
13
administering or enforcing such a child
14
labor provision, a worker)’’ after ‘‘em-
15
ployee’’; and
16
(iii) by adding at the end the fol-
17
lowing:
18
‘‘(2) Notwithstanding any other provision in this sec-
19
tion, for purposes of any child labor provision of this Act,
20
including subsections (l) and (aa), section 12, and any
21
provision of this Act administering or enforcing such a
22
child labor provision, the term ‘employer’ includes any per-
23
son engaging an individual (including an independent con-
24
tractor) for the performance of work.’’;
25
(B) in subsection (j)—
26
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•S 637 IS
(i) by inserting ‘‘(or, for purposes of
1
any child labor provision of this Act, in-
2
cluding section 12 and any provision of
3
this Act administering or enforcing such a
4
child labor provision, worker)’’ after ‘‘em-
5
ployee’’ each place it appears; and
6
(ii) by inserting ‘‘(or, for purposes of
7
any child labor provision of this Act, in-
8
cluding section 12 and any provision of
9
this Act administering or enforcing such a
10
child labor provision, engaged for work)’’
11
after ‘‘was employed’’;
12
(C) in subsection (l)—
13
(i) by striking ‘‘employment under’’
14
and inserting ‘‘work under’’;
15
(ii) by striking ‘‘employee’’ each place
16
it appears and inserting ‘‘worker’’;
17
(iii) by striking ‘‘is employed by’’ each
18
place it appears and inserting ‘‘performs
19
work for’’;
20
(iv) by striking ‘‘employing’’ and in-
21
serting ‘‘engaging for work’’;
22
(v) by striking ‘‘employment of’’ each
23
place it appears and inserting ‘‘engage-
24
ment for work of’’;
25
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•S 637 IS
(vi) by striking ‘‘employment in’’ and
1
inserting ‘‘engagement for work in’’;
2
(vii) by striking ‘‘employees’’ and in-
3
serting ‘‘workers’’; and
4
(viii) by striking ‘‘such employment’’
5
and inserting ‘‘such work’’;
6
(D) in subsection (s), by inserting ‘‘(or, for
7
purposes of any child labor provision of this
8
Act, including section 12 and any provision of
9
this Act administering or enforcing such a child
10
labor provision, workers)’’ after ‘‘employees’’
11
each place it appears; and
12
(E) by adding at the end the following:
13
‘‘(z) ‘Work’, for purposes of any child labor provision
14
of this Act, including subsections (d)(2), (l), and (aa), sec-
15
tion 12, and any provision of this Act administering or
16
enforcing such a child labor provision, means the perform-
17
ance of services for remuneration, including employment.
18
‘‘(aa) ‘Worker’, for purposes of any child labor provi-
19
sion of this Act, including subsection (l), section 12, and
20
any provision of this Act administering or enforcing such
21
a child labor provision, means any individual (including
22
an independent contractor or an employee) engaged for
23
work by an employer.’’;
24
(2) in section 11 (29 U.S.C. 211)—
25
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•S 637 IS
(A) in subsection (a)—
1
(i) by inserting ‘‘(or, for purposes of
2
any child labor provision of this Act, in-
3
cluding section 12 and any provision of
4
this Act administering or enforcing such a
5
child labor provision, work)’’ after ‘‘em-
6
ployment’’; and
7
(ii) by inserting ‘‘(or, for purposes of
8
any child labor provision of this Act, in-
9
cluding section 12 and any provision of
10
this Act administering or enforcing such a
11
child labor provision, workers)’’ after
12
‘‘such employees’’; and
13
(B) in subsection (c)—
14
(i) by inserting ‘‘or, for purposes of
15
any child labor provision of this Act, in-
16
cluding section 12 and any provision of
17
this Act administering or enforcing such a
18
child labor provision, the persons working
19
for the employer’’ after ‘‘employed by
20
him’’; and
21
(ii) by inserting ‘‘(or, for purposes of
22
any such child labor provision of this Act,
23
work)’’ after ‘‘employment’’;
24
(3) in section 12 (29 U.S.C. 212)—
25
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•S 637 IS
(A) in subsection (b), by striking ‘‘employ-
1
ment of’’ and inserting ‘‘engagement for work
2
of’’; and
3
(B) in subsection (d), by striking ‘‘em-
4
ployee’’ and inserting ‘‘worker’’;
5
(4) in section 13 (29 U.S.C. 213)—
6
(A) in subsection (c)—
7
(i) in paragraph (1)—
8
(I) in the matter preceding sub-
9
paragraph (A)—
10
(aa) by striking ‘‘employee’’
11
each place it appears and insert-
12
ing ‘‘worker’’;
13
(bb) by striking ‘‘employed
14
in’’ and inserting ‘‘engaged for
15
work in’’; and
16
(cc) by striking ‘‘so em-
17
ployed’’ and inserting ‘‘so en-
18
gaged’’;
19
(II) in subparagraph (A)—
20
(aa) by striking ‘‘employed
21
by’’ and inserting ‘‘engaged for
22
work by’’;
23
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•S 637 IS
(bb) by striking ‘‘is em-
1
ployed with’’ by inserting ‘‘is en-
2
gaged for work with’’; and
3
(cc) by striking ‘‘employees’’
4
and inserting ‘‘workers’’; and
5
(III) in subparagraph (B)—
6
(aa) by striking ‘‘such em-
7
ployment’’ and inserting ‘‘such
8
engagement for work’’;
9
(bb) by striking ‘‘employed’’
10
and
inserting
‘‘engaged
for
11
work’’; and
12
(cc) by striking ‘‘employee’’
13
and inserting ‘‘worker’’;
14
(ii) in paragraph (2)—
15
(I) by striking ‘‘employee’’ each
16
place it appears and inserting ‘‘work-
17
er’’;
18
(II) by striking ‘‘employed in’’
19
and inserting ‘‘engaged for work in’’;
20
(III) by striking ‘‘employment
21
of’’ and inserting ‘‘engagement for
22
work of’’; and
23
(IV) by striking ‘‘employed by’’
24
and inserting ‘‘so engaged by’’;
25
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•S 637 IS
(iii) in paragraph (3), by striking
1
‘‘employed’’ and inserting ‘‘engaged for
2
work’’;
3
(iv) in paragraph (4)—
4
(I) in subparagraph (A)—
5
(aa) in the matter preceding
6
clause (i)—
7
(AA) by striking ‘‘em-
8
ployment’’
and
inserting
9
‘‘engagement for work’’; and
10
(BB) by striking ‘‘em-
11
ployed’’ and inserting ‘‘en-
12
gaged for work’’;
13
(bb) in clause (ii), by strik-
14
ing ‘‘employment’’ and inserting
15
‘‘engagement for work’’;
16
(cc) in clause (iv), by strik-
17
ing ‘‘employment’’ and inserting
18
‘‘engagement for work’’; and
19
(dd) in clause (v), by strik-
20
ing ‘‘employed’’ and inserting
21
‘‘engaged for work’’; and
22
(II) in subparagraph (B), by
23
striking ‘‘employed’’ each place it ap-
24
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•S 637 IS
pears and inserting ‘‘engaged for
1
work’’;
2
(v) in paragraph (5)—
3
(I) by striking ‘‘employee’’ each
4
place it appears and inserting ‘‘work-
5
er’’;
6
(II) by striking ‘‘employees’’ each
7
place it appears and inserting ‘‘work-
8
ers’’; and
9
(III) in subparagraph (C)—
10
(aa) in clause (i), by striking
11
‘‘employee’s’’ each place it ap-
12
pears and inserting ‘‘worker’s’’;
13
and
14
(bb) in clause (iii)(I), by
15
striking ‘‘employment’’ and in-
16
serting ‘‘work’’;
17
(vi) in paragraph (6)—
18
(I) in the matter preceding sub-
19
paragraph (A)—
20
(aa) by striking ‘‘employees
21
who are under’’ and inserting
22
‘‘workers who are under’’; and
23
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•S 637 IS
(bb) by striking ‘‘Employee
1
who
are
17’’
and
inserting
2
‘‘Workers who are 17’’;
3
(II) by striking ‘‘employee’’ each
4
place it appears and inserting ‘‘work-
5
er’’;
6
(III) by striking ‘‘employee’s’’
7
each place it appears and inserting
8
‘‘worker’s’’;
9
(IV) by striking ‘‘of employment’’
10
each place it appears and inserting
11
‘‘of work’’;
12
(V) in subparagraph (F), by
13
striking ‘‘employees of’’ each place it
14
appears and inserting ‘‘workers of’’;
15
and
16
(VI) in subparagraph (G), by
17
striking ‘‘employment’’ and inserting
18
‘‘engagement for work’’; and
19
(vii) in paragraph (7)—
20
(I) in subparagraph (A)(i), by
21
striking ‘‘employed’’ and inserting
22
‘‘engaged for work’’; and
23
(II) in subparagraph (B), in the
24
matter preceding clause (i), by strik-
25
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•S 637 IS
ing ‘‘employment’’ and inserting ‘‘en-
1
gagement for work’’;
2
(B) in subsection (d), by inserting ‘‘(or, for
3
purposes of section 12, worker)’’ after ‘‘any em-
4
ployee’’; and
5
(C) in subsection (f), by inserting ‘‘(or, for
6
purposes of section 11 (with respect to any
7
child labor provision of this Act) and 12, work-
8
er)’’ after ‘‘any employee’’;
9
(5)
in
section
16(e)(1)(A)
(29
U.S.C.
10
216(e)(1)(A)), by striking ‘‘employee’’ and inserting
11
‘‘worker’’; and
12
(6) in section 18C (29 U.S.C. 218c)—
13
(A) by inserting ‘‘(or, for purposes of any
14
child labor provision of this Act, including sec-
15
tion 12 and any provision of this Act admin-
16
istering or enforcing such a child labor provi-
17
sion, worker)’’ after ‘‘employee’’ each place it
18
appears; and
19
(B) by inserting ‘‘(or, for purposes of any
20
child labor provision of this Act, including sec-
21
tion 12 and any provision of this Act admin-
22
istering or enforcing such a child labor provi-
23
sion, of work)’’ after ‘‘employment’’ each place
24
it appears.
25
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•S 637 IS
(b) CIVIL PENALTIES.—Section 16(e)(1) of the Fair
1
Labor Standards Act of 1938 (29 U.S.C. 216(e)(1)), as
2
amended by subsection (a)(5), is further amended—
3
(1) in subparagraph (A)—
4
(A) in the matter preceding clause (i), by
5
striking ‘‘not to exceed’’ and inserting ‘‘of an
6
amount (subject to subparagraph (C)) that is’’;
7
(B) in clause (i), by striking ‘‘$11,000’’
8
and inserting ‘‘not less than $5,000 and not
9
more than $132,270’’; and
10
(C) in clause (ii), by striking ‘‘$50,000’’
11
and inserting ‘‘not less than $25,000 and not
12
more than $601,150’’; and
13
(2) by adding at the end the following:
14
‘‘(C) The dollar amounts referred to in clauses
15
(i) and (ii) of subparagraph (A) shall be increased
16
annually, for fiscal year 2024 and every fiscal year
17
thereafter, by the percent increase, if any, in the
18
consumer price index for all urban consumers (all
19
items; United States city average) for the most re-
20
cent 12-month period for which applicable data is
21
available.’’.
22
(c) CRIMINAL PENALTIES.—Section 16(a) of the Fair
23
Labor Standards Act of 1938 (29 U.S.C. 216(a)) is
24
amended—
25
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•S 637 IS
(1) by striking ‘‘Any’’ and inserting ‘‘(1) Any’’;
1
(2) by inserting ‘‘(other than subsection (a)(4)
2
of such section)’’ after ‘‘section 15’’;
3
(3) by striking ‘‘subsection’’ each place it ap-
4
pears and inserting ‘‘paragraph’’; and
5
(4) by adding at the end the following:
6
‘‘(2) Any person who repeatedly or willfully violates
7
section 15(a)(4) shall upon conviction thereof be subject
8
to a fine of not more than $50,000, or to imprisonment
9
for not more than 1 year, or both.’’.
10
SEC. 3. EFFECTIVE DATES.
11
(a) APPLICATION TO ALL WORKERS.—The amend-
12
ments made by section 2(a) shall take effect on the date
13
that is 90 days after the date of enactment of this Act.
14
(b) PENALTIES.—The amendments made by sub-
15
sections (b) and (c) of section 2 shall apply with respect
16
to violations alleged to have occurred on or after the date
17
of the enactment of this Act.
18
Æ
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