Proposed labor rule would mean gig economy workers in Texas can't get unemployment benefits

The state’s labor regulator will meet this morning for a final vote on a controversial new rule on gig economy workers that opponents say will have far-reaching implications for workers going forward.

The proposed rule from the Texas Workforce Commission would eliminate a requirement that app-based companies – like Uber or DoorDash – that hire contractors pay unemployment taxes for those workers. The three-member commission gave initial approval for the rule in December.

Labor unions and worker advocates say the new rules were tailor-made by lobbyists from a firm called Handy. The Workers Defense Project filed a public information request for communications between Commissioner Ruth Hughs and the firm, which showed she sought advice and was briefed by two lobbyists working for Handy.

Jose Garza, executive director of the Workers Defense Project, says that communication violated state ethics laws, because the lobbyists failed to register properly with the Texas Ethics Commission, a detail first reported by the Texas Observer.

Read more: https://www.austinmonitor.com/stories/2019/04/proposed-labor-rule-would-mean-gig-economy-workers-in-texas-cant-get-unemployment-benefits/