Here’s How a Harris Presidency Could Affect Your Side Gig
Kamala Harris was formally chosen as the Democratic nominee in the U.S. presidential election (which takes place this coming November). This was a somewhat surprising change of events since President Joe Biden was still running for a second term until recently.
Now that the election is mere months away and there are a lot of potential changes up in the air, many people are wondering what’s going to happen if Harris were to be elected president. In particular, there are questions about how a Harris presidency could affect the side gig industry.
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Depending on what study you cite, anywhere from about a third to half of Americans have a side hustle. Given this, it’s no wonder that so many people want to know what’s coming next — and how the next president could benefit or hurt their side gig.
GOBankingRates reached out to the experts to find out what they think could happen to people’s side gigs if Harris is elected president.
Also see what a Harris presidency could mean for the economy across the U.S.
Wage Increases Could Lead to Higher Labor Costs
“As a former e-commerce business president, I’ve seen policy changes significantly impact business,” said Elliott Kosmicki, founder and president of Major Impact. “While Harris’ policies aim to benefit workers, regulations often have unintended consequences for employers.”
Under the Biden-Harris administration, Harris — alongside Biden — strove to increase the federal minimum wage to $15 an hour. This, and other proposed and continued changes, could be a double-edged sword for side gig workers.
“Minimum wage increases and paid leave mandates could negatively impact many small businesses and side gigs relying on affordable labor,” Kosmicki said. “My former company struggled to adjust pricing and operations to comply with wage hikes, forcing cost-cutting elsewhere.”
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Wage Increases Could Also Spur Demand
On the other hand, Russell Rosario, CPA, fractional chief financial officer at Profit Leap, said increased wages could have a more positive impact on the side gig industry.
“Raising the minimum wage may spur demand for some side gig services,” he said. “With more disposable income, customers may spend on convenience services like ride-sharing, food delivery and pet sitting.”
There Could Also Be Downsizing
If Harris is elected president, there could be changes to how businesses operate. Depending on her policies, businesses may end up with stricter regulations, which could have a trickle-down effect on the side gig industry.
“Policy changes often bring unintended consequences,” Rosario said. “Increased business regulations could negatively impact some small gig employers, forcing them to downsize services or staff.”
These regulations may affect only larger businesses or those in specific industries, however.
For example, under the Biden-Harris administration, more support has been given to women-owned businesses and entrepreneurs alike. Both the tech and artificial intelligence industries could also benefit from a Harris presidency, so gig workers in these areas aren’t likely to be as affected — at least not in the long term.
But gig workers who work with businesses that are impacted by stricter regulations or other policy changes could see cutbacks. This is all to say that the direct impact varies heavily based on the type of side gig you have and your clients.
As Rosario also pointed out, Harris has proposed increasing corporate taxes. Harris has also indicated the possibility of repealing the Tax Cuts and Jobs Act and returning the corporate tax rate to 35%.
If this happens, it could reduce demand for some side gigs.
How Side Gig Workers Are Classified Could Change
A Harris presidency could also affect how businesses classify side gig workers.
“Harris has been a proponent of worker protections, which could lead to changes in how gig workers are classified,” said Mary Zhang, head of finance at Dgtl Infra. “This might result in more benefits and protections for gig workers, but could also potentially increase costs for companies relying on gig labor.”
Rosario added that these classification changes could mean greater stability for those with a side gig. In particular, if side gig workers are given paid sick leave, they’d have more flexibility if they get sick.
The Impact Across Industries Could Be Disproportionate
Zhang said that Harris could increase support in several industries, including the tech sector and clean energy. This could create new opportunities for side gigs in these industries.
The same goes for education and workforce development in these sectors, which “could lead to more training opportunities, potentially making it easier for individuals to acquire the skills needed for lucrative tech-based side gigs,” Zhang said.
Bottom Line
Any policy changes would very likely require congressional approval. Even then, it could take a long time for the effects of these changes to make themselves known to side gig workers.
On the whole, Rosario believes that the side gig industry would benefit under Harris.
“Of course, without concrete policies in place, the real impacts remain to be seen,” he said. “But her focus on workers’ rights and work-life balance suggests side giggers would have an advocate in the White House.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out “Will You Still Need Your Side Gig for Extra Cash If Trump Wins a Second Term?“
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This article originally appeared on GOBankingRates.com: Here’s How a Harris Presidency Could Affect Your Side Gig
