Conservative Group Eyes Gig Policy Model As Cities Regulate: Jake Morabito in Law360
"As states pass more regulations, taxes, and different fees on these platforms, that's harming consumers by weakening the efficacy of these platforms."
As more states impose new rules and fees on rideshare and delivery apps, ALEC is developing model policy to help lawmakers respond to the growing wave of regulations targeting the gig economy and independent contractors. ALEC Communications and Technology Task Force Senior Director Jake Morabito spoke with Law360 reporter Max Kutner about how state leaders can protect worker freedom and innovation in this evolving sector.
A state legislators’ group that promotes limited government is looking to finalize a proposed model policy laying out principles for the gig economy at a time when New York City and other localities have regulated the industry.
Members of the American Legislative Exchange Council considered the drafted model policy, “Statement of Principles on the Gig Economy,” at its annual meeting on July 16. The proposal calls for policies that “enable gig workers to thrive without unnecessary restrictions that hinder their flexibility or income opportunities” and that ensure platforms “can operate freely while balancing public safety and worker protections.”
Gig workers are typically classified as independent contractors, who lack benefits and wage and hour protections mandated for employees. The drafted policy says to avoid legislation that classifies them as employees.
Jake Morabito, senior director of ALEC’s Communications and Technology Task Force, which considered the policy draft, told Law360 it is meant to consist of “bright-line principles to help lawmakers if they’re looking to legislate or regulate on the gig economy.”
“This is step one for framing any legislation,” said Morabito, who is also senior director of the ALEC’s Energy, Environment and Agriculture Task Force and previously worked in the office of Rep. Darrell Issa, R-Calif.