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Handy proposes law that could solve its legal difficulties

On-demand cleaning service would contribute “portable benefits” to its contractors.

News outlets have recently reported that on-demand cleaning startup Handy has had a hand in crafting legislation in New York that would allow it to set aside 2.5% of each transaction for “portable benefits” for its independent contractors, without the company being classified as an employer. The proposed legislation could have far-reaching impact for other service industry online marketplaces such as Uber, Lyft, TaskRabbit, and Instacart.

Whether or not a new law affecting the employee classification issue might improve Handy's long-term viability remains to be seen. This week Cleaning Business Today reported that the company is now requiring a 3-month minimum commitment from customers, effectively shifting from an on-demand model to a subscription-based one. CBT will keep you posted with further updates. 

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