Spending on federal lobbying by GIG-based firms grew in the first half of 2016, according to CQ Roll Call, a news resource that focuses on Capital issues.
GIG firms are getting wise to the fact they need to sidle up to Washington, especially as new regulations regarding the labor force come down the pike and potentially affect their business models.
“Gig economy companies are all tracking efforts to create new categories of workers who reside somewhere between independent contractors and salaried employees,” said Steven Hill, author of the book “Raw Deal: How the ‘Uber Economy’ and Runaway Capitalism Are Screwing American Workers.”. “All these companies are just living in fear of that,” he said, adding that the firms could potentially be on the hook for Social Security and other new payments if the workers are no longer classed as independent contractors.
As these GIG companies grow they will be under further scrutiny for legal and policy issues. Expenditures on lobbying issues will also rise accordingly.