McHenry Introduces the Gig Worker Equity Compensation Act
Bill Allows Non-Traditional Workers to Share in Economic Benefits Provided to Traditional Employees
Washington, September 17, 2020
Today, Congressman Patrick McHenry (NC-10), the top Republican on the House Financial Services Committee, introduced new legislation to expand the category of workers that can benefit from equity compensation to the critical gig workforce. H.R. 8280, the Gig Worker Equity Compensation Act, which complements the Pandemic Unemployment Insurance extended to gig workers in the CARES Act, will allow these essential non-traditional workers to benefit from our economic recovery and the rising stock prices of the businesses they support.
“Gig workers are critical in our technology-driven world and they have been a lifeline for Americans throughout the coronavirus pandemic,” said Congressman McHenry. “Whether they’re delivering groceries to a homebound family or giving a ride to a healthcare provider without a car, their work is essential. We can support these non-traditional workers by providing them with the ability to receive equity compensation just like traditional employees, while preserving the flexibility this sector of the workforce needs. This will give gig workers ownership of the businesses they’re making successful, and ensures hardworking people get the benefits of our economic recovery.”
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 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 flexibility supports these workers.
Unfortunately, overly burdensome state mandates have harmed non-traditional workers. Specifically, California Assembly Bill 5 (AB5), is threatening companies like Uber and Lyft’s ability to serve customers in their state and is endangering gig workers’ way of life. The Gig Worker Equity Compensation Act would permanently preempt bills like AB5.
Read the full text of H.R. 8280 by clicking here.