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 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 

MAY 4, 2021 

Mr. MCHENRY introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Education 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 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Gig Worker Equity 

3 Compensation Act’’. 

4 SEC. 2. EXTENSION OF RULE 701. 

5 (a) IN GENERAL.—The exemption provided under 

6 section 230.701 of title 17, Code of Federal Regulations, 

7 shall apply to individuals (other than employees) providing 

8 goods for sale, labor, or services for remuneration to either 

9 an issuer or to customers of an issuer to the same extent 

10 as such exemptions apply to employees of the issuer. For 

11 purposes of the previous sentence, the term ‘‘customers’’ 

12 may, at the election of an issuer, include users of the 

13 issuer’s platform. 

14 (b) ADJUSTMENT FOR INFLATION.—The Securities 

15 and Exchange Commission shall annually adjust the dollar 

16 figure under section 230.701(e) of title 17, Code of Fed17 eral Regulations, to reflect the percentage change in the 

18 Consumer Price Index for All Urban Consumers published 

19 by the Bureau of Labor Statistics of the Department of 

20 Labor. 

21 (c) RULEMAKING.—The Securities and Exchange 

22 Commission— 

23 (1) shall revise section 230.701 of title 17, 

24 Code of Federal Regulations, to reflect the require25 ments of this section; and 


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1 (2) may not revise such section 230.701 in any 

2 manner that would have the effect of restricting ac3 cess to equity compensation for employees or individ4 uals described under subsection (a). 

5 SEC. 3. PREEMPTION OF CERTAIN PROVISIONS OF STATE 

6 LAW. 

7 Any provision of a State law with respect to wage 

8 rates or benefits that creates a presumption that an indi9 vidual providing goods for sale, labor, or services for remu10 neration for a person is an employee of such person under 

11 such law is preempted. 

12 SEC. 4. GAO STUDY. 

13 Not later than the end of the 3-year period beginning 

14 on the date of enactment of this Act, the Comptroller Gen15 eral of the United States shall carry out a study on the 

16 effects of this Act and submit a report on such study to 

17 the Congress. 

Æ 


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