{"id":404257,"date":"2022-02-09T22:42:00","date_gmt":"2022-02-09T19:42:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/senators-ask-sec-to-require-disclosure-of-gig-workers-and-other-contractors\/"},"modified":"2022-02-09T22:42:00","modified_gmt":"2022-02-09T19:42:00","slug":"senators-ask-sec-to-require-disclosure-of-gig-workers-and-other-contractors","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/senators-ask-sec-to-require-disclosure-of-gig-workers-and-other-contractors\/","title":{"rendered":"#: Senators ask SEC to require disclosure of gig workers and other contractors"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ed75148515\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ed75148515\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/senators-ask-sec-to-require-disclosure-of-gig-workers-and-other-contractors\/#Democratic_senators_join_unions_in_push_for_companies_to_tell_public_how_many_gig_workers_or_subcontractors_work_for_them_as_they_do_annually_for_full-time_employees\" >Democratic senators join unions in push for companies to tell public how many gig workers or subcontractors work for them as they do annually for full-time employees<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/senators-ask-sec-to-require-disclosure-of-gig-workers-and-other-contractors\/#Levi_Sumagaysay\" >Levi Sumagaysay<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: Senators ask SEC to require disclosure of gig workers and other contractors<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Democratic_senators_join_unions_in_push_for_companies_to_tell_public_how_many_gig_workers_or_subcontractors_work_for_them_as_they_do_annually_for_full-time_employees\"><\/span>\n  Democratic senators join unions in push for companies to tell public how many gig workers or subcontractors work for them as they do annually for full-time employees<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000593703\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000593703\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       As gig work becomes a larger part of the economy, two U.S. senators and some of the nation\u2019s largest unions are pushing for corporations to disclose more about their workers who are not full-time employees.<\/p>\n<div class=\"paywall\">\n       Sens. Mark Warner, D-Va., and Sherrod Brown, D-Ohio, are urging the Securities and Exchange Commission to require publicly traded companies to report the numbers of their workers who are not classified as full-time employees, including independent contractors and subcontracted workers. The disclosures would include, for example, ride-hailing drivers and delivery workers whom Uber Technologies Inc.<br \/>\n        UBER,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211348248\/composite\" class=\"positive\">+4.38%<\/bg-quote><br \/>\n       and DoorDash Inc.<br \/>\n        DASH,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/222973991\/composite\" class=\"positive\">+7.69%<\/bg-quote><br \/>\n       do not report as \u201chuman capital\u201d in their annual filings, or the security guards and janitors who are not employed directly but work at large offices owned by the likes of Meta Platforms Inc.<br \/>\n        FB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205064656\/composite\" class=\"positive\">+5.22%<\/bg-quote><br \/>\n       and Alphabet Inc.\u2019s Google<br \/>\n        GOOGL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202490156\/composite\" class=\"positive\">+1.29%<\/bg-quote><\/p>\n<p>        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"positive\">+1.39%<\/bg-quote><span>.<\/span>\n      <\/p>\n<p> \u201cWe believe that the disclosure of this data is critical to fully capture<br \/>companies\u2019 human capital management,\u201d the senators said in a letter to SEC Chair Gary Gensler last Friday.<\/p>\n<p>The effort to seek greater disclosure comes as the SEC considers new rules on company disclosures about human capital as part of its <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/press-release\/2021-99\" class=\"icon none\">annual regulatory agenda<\/a>. Investors are also increasingly seeking changes to companies\u2019 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to human capital through shareholder proposals, as companies are dealing with labor-related challenges that include worker shortages, strikes and more.<\/p>\n<p>Under current disclosure rules, companies must report only the numbers of their full-time employees annually, but the senators say those numbers do not fully encompass the size of their workforces.<\/p>\n<p>For example, Uber disclosed 22,800 employees around the world as of the end of 2020 in its annual report, while Lyft Inc.<br \/>\n        LYFT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208999293\/composite\" class=\"positive\">+5.87%<\/bg-quote><br \/>\n       said its employee count was 4,675 employees and DoorDash said that number was 3,886. But there\u2019s a huge gap between those figures and the numbers of gig workers on which the on-demand app makers rely. Uber has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.uber.com\/newsroom\/working-together-priorities\/\" class=\"icon none\">said<\/a>, as recently as 2020, that about 1 million workers in the U.S. drove or delivered food for its platform, while Lyft and DoorDash have also recently said that they have about 1 million workers driving or delivering on their platforms globally.<\/p>\n<p><strong>See also: The legal definition of \u2018gig work\u2019 could finally be decided <\/strong><\/p>\n<p>Among the senators\u2019 concerns related to the gig economy in particular include potential long-term risks to those millions of workers, such as perpetual low wages and no opportunity to be upwardly mobile, and therefore the U.S. economy, according to their staff and their previous statements. <\/p>\n<p>Since the companies do not classify those workers as employees, they do not qualify for healthcare, worker\u2019s compensation and other benefits employees have. In the case of gig workers, one impact of that was realized when ride-hailing drivers lost their ability to make money at the beginning of the pandemic because the country was in lockdown. Some drivers were able to collect emergency unemployment benefits despite the fact that Uber and Lyft don\u2019t pay into any government unemployment insurance funds for the drivers \u2014 taxpayers footed the bill. To inform policy and legislative priorities, the senators want data to get a clearer picture of the number of workers without such safety nets. <\/p>\n<p>Gig workers are just the latest, and in some ways most high-profile, example of a long-term trend toward contingent work that includes the franchise and subcontractor model, which allow companies to push responsibilities and costs typically placed on companies onto the employees instead.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Besides those who secure gigs via on-demand apps, the senators\u2019 letter mentions a plethora of other types of workers: \u201cExamples of subcontracted out workers that should be considered part of the material workforce include security personnel, janitors, food service workers, housekeepers for hotels and lodging real estate investment trusts (REIT), and custodial workers.\u201d<\/p>\n<p><strong>In-depth: How long will the Silicon Valley employees who can\u2019t work from home keep getting paid?<\/strong><\/p>\n<p>A spokeswoman for Warner added that he is \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly concerned about companies\u2019 increased use of subcontracted and contingent workers for work that used to be performed by direct employees.\u201d She added that this has led to \u201cfissured workplaces\u201d \u2014 a term for what happens when primary employers outsource \u201cnon-core\u201d functions to other companies but still largely control the work of those subcontractors.<\/p>\n<p>Brown\u2019s staff said he and Warner have been seeking more information about companies\u2019 rising use of contract and contingent workers<em> <\/em>for the past couple of years. The letter to the SEC is just their latest effort. In 2020, they asked the U.S. Government Accountability Office\u00a0to study and prepare a report on the issue. <\/p>\n<p>The letter by Warner and Brown follows and supports a similar one sent by six unions, including the AFL-CIO, the International Brotherhood of Teamsters and the SEIU, to Gensler in January. They also asked the SEC to ensure that companies are more thorough when disclosing information about their workforce numbers. <\/p>\n<p>Referring to the \u201cproliferation of work models relying on workers who are not issuer-claimed employees,\u201d the unions said that \u201cworkers employed through these models generate considerable value for an increasing number of issuers and are thus of great interest to investors.\u201d <\/p>\n<p>Among the examples they cited: an estimated 150,000 Amazon.com Inc.<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-0.07%<\/bg-quote><br \/>\n       delivery drivers who are not directly employed by the retail giant, and 2 million McDonald\u2019s Corp.<br \/>\n        MCD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203508018\/composite\" class=\"positive\">+0.22%<\/bg-quote><br \/>\n       franchise workers. In both cases, the unions say, Amazon and McDonald\u2019s determine and control the nature of the workers\u2019 jobs and job requirements but do not disclose any other significant metrics about them. <\/p>\n<p><strong>See: How the \u2018S\u2019 in ESG can and should help low-wage workers<\/strong><\/p>\n<p>The unions suggest three methods the SEC could use to determine which workers they can require companies to include in their disclosures: including anyone to whom companies make or facilitate payments; applying the \u201cABC\u201d test that numerous states use to determine when someone is an employee or independent contractor; and using the Fair Labor Standards Act joint employer standard, which can be applied in instances of contracting, subcontracting and franchising.<\/p>\n<p>The other union leaders who signed onto the letter are from the American Federation of State, County and Municipal Employees, the Communications Workers of America and Unite Here.<\/p>\n<p>The SEC declined to comment on the letters from the senators and unions.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Levi Sumagaysay\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/author\/levi-sumagaysay\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/levisu\",\"text\":\"@levisu\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:levi.sumagaysay@marketwatch.com\",\"text\":\"levi.sumagaysay@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Levi_Sumagaysay\"><\/span>Levi Sumagaysay<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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