Gig Worker Equity Compensation Act

I 117TH CONGRESS 1ST SESSION H. R. 2990 To require the Securities and Exchange Commission to extend exemptions for securities offered as part of employee pay to other individuals pro- viding 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 MAY 4, 2021 Mr. MCHENRY introduced the following bill; which was referred to the Com- mittee on Financial Services, and in addition to the Committee on Edu- cation and Labor, 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 ex- tend exemptions for securities offered as part of employee pay to other individuals providing goods for sale, labor, or services for remuneration, to preempt certain provi- sions of State law with respect to wage rates and bene- fits, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:44 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2990 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Gig Worker Equity 2 Compensation Act’’. 3 SEC. 2. EXTENSION OF RULE 701. 4 (a) IN GENERAL.—The exemption provided under 5 section 230.701 of title 17, Code of Federal Regulations, 6 shall apply to individuals (other than employees) providing 7 goods for sale, labor, or services for remuneration to either 8 an issuer or to customers of an issuer to the same extent 9 as such exemptions apply to employees of the issuer. For 10 purposes of the previous sentence, the term ‘‘customers’’ 11 may, at the election of an issuer, include users of the 12 issuer’s platform. 13 (b) ADJUSTMENT FOR INFLATION.—The Securities 14 and Exchange Commission shall annually adjust the dollar 15 figure under section 230.701(e) of title 17, Code of Fed- 16 eral Regulations, to reflect the percentage change in the 17 Consumer Price Index for All Urban Consumers published 18 by the Bureau of Labor Statistics of the Department of 19 Labor. 20 (c) RULEMAKING.—The Securities and Exchange 21 Commission— 22 (1) shall revise section 230.701 of title 17, 23 Code of Federal Regulations, to reflect the require- 24 ments of this section; and 25 VerDate Sep 11 2014 23:44 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2990.IH H2990 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2990 IH (2) may not revise such section 230.701 in any 1 manner that would have the effect of restricting ac- 2 cess to equity compensation for employees or individ- 3 uals described under subsection (a). 4 SEC. 3. PREEMPTION OF CERTAIN PROVISIONS OF STATE 5 LAW. 6 Any provision of a State law with respect to wage 7 rates or benefits that creates a presumption that an indi- 8 vidual providing goods for sale, labor, or services for remu- 9 neration for a person is an employee of such person under 10 such law is preempted. 11 SEC. 4. GAO STUDY. 12 Not later than the end of the 3-year period beginning 13 on the date of enactment of this Act, the Comptroller Gen- 14 eral of the United States shall carry out a study on the 15 effects of this Act and submit a report on such study to 16 the Congress. 17 Æ VerDate Sep 11 2014 23:44 Jun 09, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2990.IH H2990 kjohnson on DSK79L0C42PROD with BILLS