Wisconsin Legislation Classifies Gig Drivers as Independent Contractors with Portable Benefits

The Wisconsin Legislature approved a bill classifying gig drivers for transit and delivery apps, such as Uber, Lyft, DoorDash, and Instacart, as independent contractors rather than employees. This reclassification exempts these drivers from worker's compensation, minimum wage requirements, and unemployment insurance eligibility. The legislation, supported by major tech companies and a bipartisan group of lawmakers, emphasizes the flexibility and autonomy for gig workers to set their own schedules and work for multiple platforms simultaneously.

The bill also introduces a pioneering portable benefits program, allowing gig workers to contribute to accounts that provide paid leave, retirement benefits, health care, or coverage for catastrophic events. Wisconsin would be the first state to implement such a benefits model, reflecting ongoing national debates over gig worker classification, which has seen differing federal approaches under the Biden and Trump administrations.

Opponents, including labor unions and many Democrats, argue that gig workers often take these jobs out of necessity and should receive basic labor protections such as minimum wage. The bill passed both legislative chambers with notable bipartisan support and awaits the governor's decision. The article also briefly mentions Wisconsin's approval of a bipartisan bill criminalizing "sextortion" as a felony, highlighting the state's responsiveness to emerging cybercrimes posing risks to minors.