Gig Worker Equity Compensation Act

Gig Worker Equity Compensation Act

This bill preempts any state law that classifies an individual providing labor or services for remuneration (i.e., an independent contractor) as an employee for purposes of wage-rate and benefit requirements.

The bill also broadens the existing Securities and Exchange Commission registration exemption for the issuance of securities as part of an employee-compensation package. Specifically, the bill applies this exemption to the issuance of securities as compensation for independent contractors.

The Government Accountability Office must report on the bill's effects. 

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2612 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 2612

To require the Securities and Exchange Commission to extend exemptions 
  for securities offered as part of employee pay to other individuals 
   providing goods for sale, labor, or services for remuneration, to 
preempt certain provisions of State law with respect to wage rates and 
                   benefits, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2023

 Mr. McHenry introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
Education and the Workforce, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To require the Securities and Exchange Commission to extend exemptions 
  for securities offered as part of employee pay to other individuals 
   providing goods for sale, labor, or services for remuneration, to 
preempt certain provisions of State law with respect to wage rates and 
                   benefits, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gig Worker Equity Compensation 
Act''.

SEC. 2. EXTENSION OF RULE 701.

    (a) In General.--The exemption provided under section 230.701 of 
title 17, Code of Federal Regulations, shall apply to individuals 
(other than employees) providing goods for sale, labor, or services for 
remuneration to either an issuer or to customers of an issuer to the 
same extent as such exemptions apply to employees of the issuer. For 
purposes of the previous sentence, the term ``customers'' may, at the 
election of an issuer, include users of the issuer's platform.
    (b) Adjustment for Inflation.--The Securities and Exchange 
Commission shall annually adjust the dollar figure under section 
230.701(e) of title 17, Code of Federal Regulations, to reflect the 
percentage change in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics of the Department of Labor.
    (c) Rulemaking.--The Securities and Exchange Commission--
            (1) shall revise section 230.701 of title 17, Code of 
        Federal Regulations, to reflect the requirements of this 
        section; and
            (2) may not revise such section 230.701 in any manner that 
        would have the effect of restricting access to equity 
        compensation for employees or individuals described under 
        subsection (a).

SEC. 3. PREEMPTION OF CERTAIN PROVISIONS OF STATE LAW.

    Any provision of a State law with respect to wage rates or benefits 
that creates a presumption that an individual providing goods for sale, 
labor, or services for remuneration for a person is an employee of such 
person under such law is preempted.

SEC. 4. GAO STUDY.

    Not later than the end of the 3-year period beginning on the date 
of enactment of this Act, the Comptroller General of the United States 
shall carry out a study on the effects of this Act and submit a report 
on such study to the Congress.
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