H.R. 2612 – Gig Worker Equity Compensation Act

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Updated January 20, 2026 at 6:13 AM UTC

The Gig Worker Equity Compensation Act directs the Securities and Exchange Commission to broaden the Rule 701 exemption so that non‑employee gig workers—people who provide goods, labor, or services for pay—can receive securities as part of their compensation, just like employees. It also blocks state laws that automatically label such workers as employees for wage‑rate or benefit purposes, and requires a GAO study of the law’s impact.

Key Provisions

Extends the Rule 701 exemption to individuals other than employees who provide goods, labor, or services to issuers or their customers, allowing them to receive equity compensation.
Requires the SEC to annually adjust the exemption’s dollar threshold based on the Consumer Price Index for inflation.
Mandates the SEC to revise Rule 701 to reflect these changes and prohibits revisions that would restrict equity access for the newly covered individuals.
Preempts any state law that presumes gig workers are employees for wage‑rate or benefit purposes.
Orders the GAO to study the effects of the Act within three years and report the findings to Congress.

Legislative Activity

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HouseIntro Referral Latest Action

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.

Financial Services Committee

April 13, 2023

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HouseIntro Referral

Introduced in House

April 13, 2023

HouseIntro Referral

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.

Financial Services Committee

April 13, 2023

Bill Text

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Introduced in HouseIssued April 13, 2023

I

118th CONGRESS

1st Session

H. R. 2612

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.

1.

Short title

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

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).

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.

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.