TLDR: Uber and Lyft may have to suspend their services in California after a San Francisco judge ruled last week that the firms must comply with a state law—Assembly Bill 5 (AB 5)—that requires California companies, including “gig economy” platforms, to reclassify many independent contractors as employees. Although the law is ostensibly targeted at larger platforms like Uber and Lyft, it is likely to be an existential threat for smaller startups.
Startup News Digest 07/10/20
The Big Story: Startup community voices concerns about suspension of H-1B visas. U.S. startups are asking the Trump administration to reconsider a recent decision that will limit access to high-skilled talent amid the coronavirus pandemic. In a new letter, Engine and 118 startups, entrepreneurial organizations, and other companies—including Pinterest, Postmates, Reddit, and Twitter—are asking President Donald Trump to reconsider his suspension of work visas to high-skilled foreign workers, including those issued under the H-1B visa program. The letter comes after the president signed an executive order last week temporarily halting the issuance of work visas for foreign workers through the end of the year.
Engine, startups push White House to reconsider suspension of work visas
This afternoon, Engine released a letter signed by 118 startups, entrepreneurial organizations, and other companies—including GitHub, Postmates, Reddit, and Twitter—asking the Trump administration to reconsider its recent suspension of work visas for high-skilled foreign workers, including those issued under the H-1B visa program.
Statement on the Trump Administration’s Proclamation to Suspend Visas for Foreign Workers
The administration’s decision to halt the issuance of work visas—including those under the H-1B program—for highly-skilled foreign workers will needlessly harm the tech industry and U.S. startup ecosystem that rely upon talented employees to drive global innovation. Instead of helping startups and small businesses recover from the coronavirus pandemic’s economic downturn, this proclamation hampers the tech sector’s ability to respond to the ongoing outbreak by limiting the effectiveness and reach of its workforce.
Statement on the Supreme Court's DACA Decision
DACA decision is make or break moment for startups
The fate of up to 800,000 individuals and their ability to live and work in the United States will be decided in the coming months, as the Supreme Court heard oral arguments on Tuesday for the consolidated cases challenging the Trump Administration’s termination of the Deferred Action for Childhood Arrivals (DACA) program. While the justices appeared split in their questioning, the outcome of this case will not just have ramifications for the recipients and their communities, but also stands to impact the desirability of the United States as a destination for high-skilled workers to put their skills and entrepreneurial initiative to the test.
Engine submits comments to House Antitrust Subcommittee on non-compete agreements
Engine submitted comments to the House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law following the panel’s October 29th hearing on competition in labor markets.
Lawmakers use recess break to learn more about local startups
Although Congress has been on recess for the past two weeks, that hasn’t stopped lawmakers from connecting with startups and entrepreneurs back home. At least six representatives and one senator toured startup facilities, spoke with and profiled small business owners, or otherwise learned more about the entrepreneurial endeavors of their constituents.
Encouraging Entrepreneurship: AARP Foundation's work with entrepreneurs 50+
Primer: Immigration
Primer: Creating a Workforce for Startups
Engine and Tech:NYC Support Sen. Moran and Warner's Startup Act
Senators Jerry Moran (R-KS) and Mark Warner (D-VA) reintroduced their Startup Act, bipartisan legislation intended to encourage job growth and the creation of new innovative businesses. In 2017, the senators last introduced this legislation, which would accelerate the commercialization of university research, review and improve the regulatory processes at the federal, state and local levels, and modernize an Economic Development Administration (EDA) program designed to promote innovation.
Engine Weighs in on Proposed H-1B Visa Requirements
Rescission of International Entrepreneur Rule Bad for Startups
The Trump Administration’s decision to rescind the International Entrepreneur Rule (IER) is deeply disappointing for startups across the country. The rule was enacted to create a pathway for immigrant entrepreneurs to build companies and create jobs in the United States. For an Administration that has promised to spur job growth, this decision is incredibly short-sighted and detrimental to our long-term economic prosperity.
Reflecting on Diversity in Tech on MLK Day
Today, as we celebrate Martin Luther King Jr., one of the most ardent advocates for the advancement and equality of African Americans in history, we should reflect on the continuing injustice in our socioeconomic system and contemplate how we can more effectively work to close the racial entrepreneurship gap.
2017 Year in Review: Immigration Reform
The debate over immigration policy intensified in 2017 as the new administration issued several executive orders aimed at curbing the flow of immigrants to the United States. Engine led the charge in pushing back against many of these measures, including a letter signed by over 200 startups opposing the Administration’s Executive Order banning citizens from seven countries. Skilled immigrants, especially those admitted under the H-1B program, bolster the country’s capacity for innovation and provide immense benefit to its economy at large. What’s more, foreign talent has fueled America’s thriving culture of entrepreneurialism and played a central role in making our country the leader in technology startups.
Engine Celebrates Women's Small Business Month
Engine's Statement on Trump's Decision to End DACA
Engine Statement on President Trump’s ‘Buy American, Hire American’ Executive Order
Yesterday, President Donald Trump signed an executive order reiterating the Administration’s policy to buy American and hire American. The ‘Hire American’ side of the Executive Order directs federal agencies to evaluate the various programs that allow foreign workers to enter the United States, with a particular focus on the H-1B visa program.
Engine Statement on Ninth Circuit Ruling on Immigration Ban
Today, the U.S. Court of Appeals for the 9th Circuit ruled against President Trump’s executive order banning the citizens of seven countries and refugees from entering the U.S., maintaining a lower court’s freeze on the order. As a result, immigrants and refugees who were previously barred from the country under Trump’s EO can continue to enter the U.S.