In July 2025, Republican lawmakers introduced a legislative package to help gig workers access benefits without being reclassified as employees. Key components include:
- The Unlocking Benefits for Independent Workers Act (Sen. Cassidy, R‑LA): Establishes a federal safe harbor that allows companies to voluntarily provide benefits—like health insurance and retirement savings—without risking misclassification lawsuits subscriber.politicopro.com+8Axios+8help.senate.gov+8.
- The Independent Retirement Fairness Act: Enables contributions to portable retirement plans (e.g. SEP-IRAs, pooled employer plans) for gig workers ascensus.com+4help.senate.gov+4napa-net.org+4.
- The Modern Worker Empowerment Act: Aims to create a uniform federal test for classifying independent contractors help.senate.gov+1.
- The Association Health Plans Act (Sen. Paul, R‑KY): Expands access to group-style health plans for freelancers and gig workers en.wikipedia.org+10help.senate.gov+10napa-net.org+10.
These proposals signal a major shift—allowing workers to gain some employment-type benefits while preserving the independent contractor model and flexibility most value.
Department of Labor Halts Enforcement of 2024 “Gig Worker Rule”
On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin 2025‑1, halting enforcement of the Biden Administration’s 2024 labor rule, which had tightened the criteria used to classify gig workers as employees risk-strategies.com+3nelsonmullins.com+3venable.com+3. Instead, DOL field staff will revert to the older 2008 economic‑reality standard (Fact Sheet #13) when evaluating independent contractor status venable.com.
Though this pause eases employer burdens, the 2024 rule still applies in private litigation unless replaced. Thus, misclassification lawsuits can still proceed under the stricter criteria venable.com+1.
Why Benefits Legislation Matters Now
- More than 27 million Americans work as independent contractors or gig workers help.senate.govnapa-net.org.
- These workers currently lack access to key protections like minimum wage, overtime, health coverage, unemployment insurance, and workers’ compensation—due to their contractor status hrw.org+1.
- Critics argue that past corporate-led programs (e.g. DoorDash’s $7/week stipend) are insufficient and not genuinely portable or protective nelp.org+2millershah.com+2.
Advocates believe the new bills could provide a platform for meaningful benefit access—including sick leave, insurance, and retirement—independent of traditional employment structures https://www.localnewslive.com.
Potential Impact of the Reforms
| Area | What Might Change |
|---|---|
| Legal Shield | Companies gain protection against misclassification claims when offering benefits voluntarily. |
| Benefit Access | Gig workers may gain health insurance, retirement savings, and sick leave via portable systems. |
| Worker Classification Clarity | The Modern Worker Empowerment Act seeks a single, consistent classification test. |
| Insurance Market Options | Association Health Plans may expand affordable coverage access for solo workers. |
Key Criticisms & Uncertainties
- The bills are voluntary, not mandatory—employers are not required to offer benefits sfchronicle.com+3millershah.com+3reuters.com+3help.senate.gov+1Axios.
- Association Health Plans may lack ACA consumer protections, and critics fear they’ll offer limited, skimpier coverage Voxhelp.senate.gov.
- Deeper misclassification concerns remain, especially as states like California and New York tighten contractor rules hrw.orgnjbia.org.
What Gig Workers Should Know
- Employer-Provisioned Benefits Are Still Optional: Employers can now legally offer benefits without making workers employees, but many may choose not to.
- Classification Still Matters: Independent contractor misclassification continues to impact access to broader protections unless formal federal classification reforms occur.
- Legal Landscape Is Shifting: While DOL temporarily reverts to the older standard, private lawsuits may still use the stricter 2024 rule. Future policy revisions are possible venable.comnelsonmullins.com.
- Local Law Variation: Certain states impose stricter standards than federal law, affecting whether contractors qualify as employees locally.
Bottom Line
Gig workers today remain classified as independent contractors, limiting access to traditional workplace benefits. However, new federal legislation in 2025 offers a path forward for accessing portable benefits while preserving flexibility. Meanwhile, the DOL’s pause on the enforcement of the Biden-era 2024 rule gives employers more classification flexibility—but workers may still invoke the stricter test in litigation.
The outcome of these legislative efforts—and any future shifts in enforcement or state-level actions—will be crucial in determining whether gig work can become both independent and economically secure.