bbieron@platformeconomyinsights.com

Mexico Enacts Gig Worker Legislation Classifying Top Earners as Employees

Jan 12, 2025

Report from Mexico News Daily

In Brief – Mexico has enacted “Gig Worker” legislation that aims to provide hundreds of thousands of platform-enabled workers with traditional employment benefits and protections. The new law, which goes into effect in June, establishes that gig workers earning at least the national minimum monthly salary (currently the equivalent of approximately US $450) on a digital platform will be categorized as an employee of that platform and be due employee rights and benefits, including the right to join a union. Work and pay on platforms will continue to be task-based, with pay for a task including the proportional contributions for benefits such as weekly rest day, vacation, and overtime, rather than additional amounts being added afterward. Those who work on digital platforms but do not reach the monthly minimum wage threshold on any single one will continue to be classified as independent contractors. A digital platform will be required to register their platform employees with the Mexican Social Security Institute and withhold and pay the employee and employer contributions, including to the Mexican Workers Housing Fund Institute. Platforms will also be responsible for payment of the insurance under the social security system for any labor accident that occurs while a task was being done, both for employee workers and independent contractors. It is reported that about 658,000 people work on digital platforms in Mexico, of including 272,000 estimated to reach the minimum monthly wage.

Context – Although the EU’s Platform Labor Directive was initially intended to set uniform Gig worker employee classification standards, the final version left that in the hands of each member state, with some, including Spain and Portugal, going further than others. The Biden Administration was engaged in regulatory action at the US Department of Labor and the FTC intended to energize progressive labor advocates, but the incoming Trump Administration is expected to halt those efforts and be more amenable to independent contractor-based business models.

View By Monthly
Latest Blog
Federal Appeals Court Panel Upholds Florida Teen Social Media Law

Report from the Orlando Sentinel In Brief – A unanimous three-judge panel of the 11th Circuit Court of Appeals panel has ruled Florida’s law restricting minors’ social media accounts is likely constitutional and is allowing enforcement during remaining litigation. The...

The Federal Trade Commission is Investigating Anthropic and OpenAI

Report from the Wall Street Journal In Brief – Federal Trade Commission officials have said that the agency is investigating Anthropic and OpenAI over whether they have deceived consumers about potential harms from AI. The effort has reportedly been underway for weeks...

Polish Antitrust Regulator Presses Google on Media Payments

Report from Digital Watch In Brief – Poland’s competition regulator has opened an investigation of Google that accuses the search giant of abusing its market dominance in negotiations with news publishers over payments for the use of media article snippets in results...

White House SI Force Orders AI Companies to Quickly Report Incidents

Report from Silicon Valley In Brief – The White House, through its recently established Super Intelligence (SI) Force, has demanded “full transparency” and “immediate remediation” after Anthropic disclosed that its AI agents submitted false information to the...

California Enacts Law Regulating AI Use by Employers

Report from CNBC In Brief – California Governor Gavin Newsom (D) has signed SB 947, the No Robo Bosses Act, making California the first state to prohibit employers from relying solely on artificial intelligence to discipline or fire workers. Employers that heavily use...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required