Joe Biden's New Job: What's Next for the Former President?
Having previously managed the Obama-Biden campaign and served as White House deputy chief of staff, and now working within the technology industry in San Francisco, I am optimistic regarding the Biden-Harris administration’s potential to establish effective policies and a stable regulatory environment, thereby unlocking further growth for the sector – alongside the positive impact their pragmatic and deliberate leadership style could have on the broader economy.
Nevertheless, a change in administration invariably brings altered viewpoints on the significant challenges confronting Silicon Valley. While a strong relationship between the innovation economy and the Obama-Biden administration fostered national economic success, the technology sector is now deeply integrated into virtually all aspects of American life.
This evolving dynamic suggests the current administration will prioritize its regulatory function, and both investors and businesses should anticipate swift policy action from President Biden, particularly concerning the future of work and the revitalization of the U.S. economy.
Gig economy companies experienced a remarkably successful 2020. Despite a substantial decrease in ride-hailing services, the increased demand for delivery of meals, groceries, and other goods, coupled with the passage of Proposition 22 in California, boosted market valuations and prepared numerous startups for initial public offerings. However, while the West Coast feels encouraged, Washington D.C. is pursuing a different course.
For several months, Congress has been considering legislation regarding gig worker classification, known as the PRO Act. This bill closely resembles the controversial California Assembly Bill 5, which Proposition 22 largely overturned. It enjoys broad support from labor organizations and may gain momentum this year. Labor groups are actively building support within congressional coalitions, while gig economy companies are preparing to counter it with substantial financial resources.
The central question is – what course will President Biden take? He previously expressed support for AB 5 and outlined plans to address worker misclassification during his campaign. Simultaneously, he is appointing individuals with extensive experience in the technology sector to key administrative positions. President Biden’s long tenure in public office, exceeding the lifespan of most startup founders, equips him with a deep understanding of Washington’s dynamics and the art of compromise. He recognizes that the practical implementation of a law often receives less attention during legislative debates.
Despite the length of most legislation, often spanning thousands of pages, it is rarely highly detailed. These specifics are typically delegated to regulatory agencies. President Biden will oversee the Department of Labor, which would be responsible for implementing the PRO Act if it is enacted.
It is reasonable to expect the Biden administration to convene discussions between the Department of Labor and industry representatives to determine how companies can effectively implement worker protections. President Biden’s nominee for Labor Secretary, Boston Mayor Marty Walsh, is respected by the business community as a collaborative leader, despite his strong support for labor rights.
Evidence of this potential outcome is already visible at the state level. Gig companies are currently pursuing Proposition 22-style campaigns in six states and advocating for related legislation in another six. By the close of 2021, legislation codifying worker protections, modeled after Proposition 22, will be in effect in nearly one-third of the country.
This momentum is undeniable, and labor organizations are aware of it. While labor groups are united in their support for the PRO Act, their positions diverge when considering state-level actions. For instance, labor’s stance on gig laws in New York and New Jersey differs significantly from that in states like Washington or Illinois, where gig work is newer and regulations supported by Uber and Lyft were recently adopted.
Labor is as aligned as possible to support the PRO Act, but the absence of a unified national movement creates opportunities for compromise.
This situation is encouraging for the technology sector. It is unrealistic to assume that regulations protecting gig economy workers will not eventually be implemented – and that is a positive development, as the tech industry has a moral obligation to treat its workforce fairly. However, these regulations will not be unilaterally imposed on the tech sector; instead, they will emerge through ongoing campaigns and legislative processes at both the state and federal levels, ultimately leading to negotiations and compromises.
Alternatively, the process could extend for years, involving renewed regulatory reviews. All of this will be guided by a new president who has directly observed throughout his career how innovation can contribute to national growth and recovery.
Following four years characterized by the previous administration’s resistance to facts, unrealistic expectations, and economic setbacks, Biden will champion evidence-based policymaking, public service, and private sector innovation to collaboratively develop solutions. This will be a challenging undertaking, and it may not always be seamless, but we can anticipate the beginning of a new period of U.S. technology-driven progress.