Wisconsin Sends Gig Worker Benefits Bill to Gov. Evers’ Desk

The Wisconsin state legislature passed a bill establishing “portable benefits” for gig workers while maintaining their status as independent contractors.

The legislation applies to drivers for app-based companies like Uber Technologies Inc. or DoorDash Inc., and follows similar laws in Washington and Utah.

The industry-backed legislation passed Wednesday with Republican and some Democratic support. Wisconsin Gov. Tony Evers (D) has not said whether he will sign the bill.

Wisconsin’s bill is one of the first to regulate worker benefits in the growing gig economy, which has sparked a debate around how traditional wage and insurance laws should apply to non-traditional employer benefits. Democrats and unions have argued the move toward gig workers could incentivize employers to misclassify workers in order to skimp on benefits.

The bill allows companies to contribute up to 4% of a driver’s quarterly earnings to portable benefit accounts so workers can pay for insurance premiums, transfer the money to an individual retirement account, or make up for lost income for certain situations like the birth of a baby.

Drivers would also be permitted to deduct their own contributions from their paychecks. Companies would also be allowed to offer accident and sickness insurance to gig workers with minimum coverage requirements.

The debate is playing out on the federal level as well. Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy (R-La.) released a draft proposal in April to carve out gig workers from labor laws for the purposes of offering benefits.