Watson began her legal career as a Skadden Public Interest Law Fellow in New York City's Welfare Law Center, representing participants in the city's workfare program and educating women about their rights under labor and employment laws. Watson briefly worked as an employment attorney at Orrick, Herrington & Sutcliffe before joining the staff of the Workplace Flexibility 2010 project at Georgetown Law School, where she developed policies to help low-wage workers better balance work and family responsibilities. She was then promoted to executive director of the Georgetown Center on Poverty, Inequality and Public Policy, where she led a group proposing a broader set of public policy initiatives to address the needs of low-income workers. At the National Women's Law Center, Watson was director of Workplace Justice for Women and Senior Counsel, and authored publications such as "It Shouldn’t Be A Heavy Lift: Fair Treatment for Pregnant Workers" and "50 Years & Counting: The Unfinished Business of Achieving Fair Pay". From 2015 to 2017, she served as the labor policy director and chief labor counsel for House Democrats in the Committee on Education and the Workforce in the United States House of Representatives. In 2017, Watson returned to Bloomington and began teaching constitutional law at the Indiana University Maurer School of Law while running for Congress. The Congressional Progressive Caucus Center named her its executive director in 2019.
2018 House of Representatives campaign
In July 2017, Watson announced her candidacy to represent Indiana's 9th congressional district in the U.S. House of Representatives as a Democrat.
Primary election
Watson defeated civil rights attorney Dan Canon and truck driver Rob Chatlos in the May 8, 2018, Democratic primary election with 24,981 votes and 66.4% of total votes cast. Watson's victory garnered national attention for the high level of financial and volunteer support she received from women.
General election
In September 2018, Watson was endorsed by Senator Bernie Sanders. As of September 30, 2018, the Liz for Indiana campaign reported $1,946,997 in total receipts and $1,452,365 in total disbursements. Watson lost to Republican incumbent Trey Hollingsworth in the November 6, 2018, general election.
Political positions
Health care
Watson supports Medicare for All. She also supports the Affordable Care Act, calling it a "starting point" that needs work. On her campaign website, Watson says she opposes defunding Planned Parenthood, calling it "high-quality, affordable health care for both women and men." She also opposes Congressional attempts to block Medicaid patients from accessing care at Planned Parenthood centers. Regarding marijuana policy, Watson supports the legalization of medical marijuana as well as federal measures to prevent interference from the Department of Justice in the implementation of state medical cannabis laws.
Watson supports reinstating the federal ban on assault weapons which expired in 2004. Additionally, Watson supports revoking the Center for Disease Control's ban on researching gun violence. Watson opposes the Concealed Carry Reciprocity Act which "would require states to recognize concealed carry permits issued by other states."