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McHenry Reintroduces Gig Worker Equity Compensation Act


McHenry Reintroduces Gig Worker Equity Compensation Act


Bill protects gig worker flexibility, while allowing non-traditional workers to share in the economic benefits offered to traditional employees



Washington,
May 6, 2021 
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The Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), reintroduced H.R. 2990, the Gig Worker Equity Compensation Act. This legislation will include the gig workforce in the category of workers who are able to benefit from equity compensation, helping them share in our economic resurgence, while preserving the flexibility and independence that is so critical to Americans working in the gig economy.


“How people choose to work is changing. Our technology-driven economy is embracing this shift, Washington needs to keep up,” said Republican Leader McHenry. “By giving these non-traditional workers access to equity compensation—just like traditional employees—we can ensure they benefit from the growth of the companies they are making successful. While Democrats attempt to stifle this growing sector of the workforce, my bill ensures they retain the flexibility they need while giving them the opportunity to grow wealth. This is a win for our capital markets, job creators, and gig workers.”


Background:


Today, more than a quarter of the U.S. workforce participate in the gig economy or non-traditional work—whether that’s as a rideshare driver, food delivery courier, or sharing their property through a platform like Airbnb—in some capacity. Additionally, more than one in ten workers rely on alternative work arrangements, like gig work, for their primary source of income. These workers represent an increasing number of Americans that do not want to be bound by constraints like an office, set hours, or a traditional employer-employee relationship. This bill provides additional flexibility to support these workers.

In November 2020, the Securities and Exchange Commission (SEC) voted to propose rules that would provide equity compensation options for gig workers. Ranking Member McHenry welcomed the positive step forward and committed to working with the Commission to implement his broader proposal. 


Even though California voters wisely rejected California Assembly Bill 5 (AB5)—a type of bill the Gig Worker Equity Compensation Act would permanently preempt—President Biden’s Labor Secretary is actively working to dismantle the previous Administration’s efforts to provide gig workers with the flexibility they require. In a Wednesday announcement, the Labor Department nullified a rule that helped bring the regulation of the gig workforce into the 21st century. This endangers a non-traditional worker’s way of life and a company’s ability to serve their customers.


Read the full text of H.R. 2990 here.


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