U.S. Labor Department Proposal on "Gig" Workers

Some of you may find this interesting and applicable…so FYI

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Read CA Gig Worker law which should shed more light on subject.

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@alice2uworld All due respect, Alice, but why would I? I’m in Florida and this is proposed Federal legislation. I don’t understand your response.

The Federal proposal is modeled after CA’s labor law. Reading up on the CA Gig worker legislation will provide you with insight as to what the Fed rules may look like.

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Can someone provide a short overview of what this legislation means?

Biden’s proposal is similar that what CA and much of Western Europe is following. One key element is Economic Dependency. ED is defined as an individual who’s income is dependent upon a single source. Single source income is defined as a majority, >50% of one’s total income. In Europe several countries set the threshold at 75% of ones income, coming from a single source. This definition could impact Gig workers like Lyft, Door Dash, and Uber. This may also impact NSAs who’s primary source of income originates from a single Title Company.

There’s also a definition of specific Trades and the requirement for a written contract. In some definitions a ‘contractor’ has to be providing a service or product that is not part of an ‘employer’s’ regular output. I’ve included a link that explains how Spain handles things around Gig workers.

Since most NSAs work for several ‘employers’ it’s doubtful that this would impact us. However, I caveat this by the fact until we see the final rules, we’re not going to know for certain how things are suppose to work.

I suspect that this is part of a larger effort to close the tax gap. Gig workers who operate mostly from cash may not be reporting all of their income for tax purposes. For example the local dog groomer or mobile automotive detailer, or handy man. It’s estimated there’s upwards of between $160 to 600 Billion in unreported income that goes untaxed. (source: Center on Budget and Policy Priorities.)

https://www.cbpp.org/research/federal-tax/reducing-the-tax-gap-5-key-points-on-information-reporting)

Comments made by me are for educational purposes only, and should not be considered as Financial, Legal, Empolyment, or Tax advice. As each individual’s situation is unique it’s recommended that you seek the advice of a qualified professional.

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Just posted information that I hope will assist in your quest for further information.