Recent Press Releases

Ten Innovative Technology Companies Support Thune’s NEW GIG Act

“The gig economy is continuing to grow at an increasingly quick pace, and I think it’s important for Congress do its part to keep up and ensure our laws don’t prevent or stifle future growth.”

August 24, 2017

WASHINGTON — 

U.S. Sen. John Thune (R-S.D.), a member of the tax-writing Senate Finance Committee, today welcomed the support from 10 innovative technology companies for his New Economy Works to Guarantee Independence and Growth (NEW GIG) Act of 2017 (S. 1549), legislation that addresses the classification of workers – independent contractors versus employees – and creates a safe harbor for those who meet a set of objective tests that would qualify them as an independent contractor, both for income and employment tax purposes. This legislation, which was introduced on July 13, 2017, is important for traditional independent contractor arrangements, like computer consultants, freelance writers, and delivery drivers, as well as all of those individuals who participate in the gig economy and provide a rapidly growing range of services.

“The gig economy is continuing to grow at an increasingly quick pace, and I think it’s important for Congress do its part to keep up and ensure our laws keep don’t prevent or stifle future growth,” said Thune. “I welcome the support of these technology leaders who represent companies that are changing the way families throughout the country receive goods and services. I look forward to building additional support for this bill and working with my colleagues in Congress to see that the NEW GIG Act is included in the Senate’s tax reform bill.”  

Leaders of Uber, DoorDash, Instacart, Glam Squad, Postmates, Grubhub, Saucey, Handy, Shipt, and Hyr recently wrote to Thune to express their strong support for his “leadership on this critical issue,” and they urged “Congress to include S. 1549 in tax reform legislation.” The company leaders also indicated that Thune’s NEW GIG Act “will enable continued growth and innovation in the ‘on-demand’ economy by clarifying the tax treatment of independent contractors who work in this important sector.”

Summary of the NEW GIG Act:

The bill would create a safe harbor based on objective tests, which if satisfied, would ensure that the service provider (worker) would be treated as an independent contractor, not an employee, and the service recipient (customer) would not be treated as the employer. In the context of the gig economy where an internet platform or app facilitates the transactions and payments, that third party would also not be treated as the employer.

Click here for additional summary information on the NEW GIG Act.