January 2024 NCSEA CSQ

primarily to traditional W-2 employees and
not to independent contractors earning
compensation through the gig economy,
such as rideshare or delivery drivers.
As a result, this initial legislative change did
not significantly increase new hire reporting
by companies utilizing independent
contractors. Specifically, this approach did
not seem effective in compelling rideshare
companies to utilize new hire reporting for
their independent contractor drivers. For
“The Texas child support
program strives to be a
leader in engaging with
companies and individuals
who operate in the gig
economy to ensure that they
comply with child support
laws and that support
obligations get paid.”
example, in the six-month period before the legislative change, the OAG-
CSD received only 27 new hire reports from one of the major national
rideshare companies, all related to their full-time equivalent employees.
When HB 458 was filed by Representative Matt Shaheen in 2021, its stated
purpose was to remedy a concern that Texas’ statutes related to income
withholding and new hire reporting did not adequately address child
support collections for those working for “transportation network
companies” or “certain technology platforms used for deliveries.” A
rideshare company was termed a “transportation network company” under
existing Texas law, defined as an “entity that for compensation, enables a
passenger to prearrange with a driver, exclusively through the entity’s
digital network, a digitally prearranged ride.”