Wisconsin is poised to become the first U.S. state to implement a sweeping classification change for gig economy workers, under a new bill headed to Governor Tony Evers’ desk. The proposed legislation redefines app-based drivers—working for companies like Uber, DoorDash, Lyft, and Instacart—as independent contractors rather than employees. This marks a major pivot in how labor rights, benefits, and worker protections are applied in the state, with potentially national implications.
The move comes amid a broader, years-long debate in the United States over how to categorize gig workers. While supporters of the bill claim it offers more freedom and opportunity for drivers, critics say it strips away essential worker protections and benefits under the guise of flexibility.
What the Bill Proposes
The core element of the bill is its reclassification of gig economy drivers as independent contractors. This means that rideshare and delivery drivers in Wisconsin would not be entitled to minimum wage guarantees, unemployment insurance, or worker’s compensation. Instead, they will work under a new model that prioritizes flexibility over traditional employment benefits.
The bill applies specifically to those working through digital platforms that connect drivers with consumers—apps like Uber, Lyft, DoorDash, and Instacart. It formalizes what has already been a common but legally gray area: gig drivers operating without the protections that regular employees enjoy.
A unique feature of the bill is the introduction of a “portable benefits” system. Under this program, drivers can voluntarily pay into benefit accounts that would help fund essentials such as paid leave, healthcare, retirement savings, or catastrophic event coverage. This would be a first-of-its-kind system in the United States, if signed into law.
Supporters Say It’s About Flexibility and Choice
Proponents of the bill, including most Republican legislators and a handful of Democrats, argue that the independent contractor model empowers gig workers. They stress the appeal of choosing when and where to work, and the ability to drive for multiple platforms without restriction.
Republican Representative Alex Dallman of Markesan, a former Uber driver himself, framed the bill as worker-focused. “This legislation allows gig workers to choose their schedule, maintain control over their income, and now, build benefits on their own terms,” Dallman said.
Support also came from major gig economy platforms themselves. Companies like Uber, DoorDash, and Instacart have long lobbied for this type of classification, which lowers their legal responsibilities and allows them to avoid the costs associated with hiring workers as employees.
If enacted, Wisconsin would become the first state in the country to launch a portable benefits program for independent contractors, creating a potential model for others to follow.
Critics Argue It Undermines Basic Labor Rights
Labor groups and most Democrats in the Wisconsin Legislature have pushed back strongly against the bill, warning that it could set a dangerous precedent. The AFL-CIO, one of the largest labor unions in the country, condemned the legislation, calling it an erosion of fundamental worker protections.
The critics’ main concern is that most people working for rideshare and delivery apps aren’t doing it by choice, but out of economic necessity. They argue that gig workers, who often struggle with inconsistent earnings and long hours, should be guaranteed minimum wage, access to unemployment benefits, and worker’s compensation in the case of injury.
They also point out that the promise of flexibility is often overstated. Gig workers may technically choose their hours, but app algorithms, surge pricing, and performance metrics often manipulate when and how much workers can earn—creating a façade of independence.
Further, while the portable benefits system sounds promising, opponents question how practical or accessible it will be for workers who are already living paycheck to paycheck. Voluntarily paying into a benefits account when wages are not guaranteed might prove unfeasible for many.
A Deepening National Debate
This legislation enters an already polarized national conversation. Under former President Donald Trump’s administration, gig workers were broadly categorized as independent contractors. But President Joe Biden’s Department of Labor had moved to reclassify many of them as employees, aiming to secure more labor protections.
Wisconsin’s decision to enshrine contractor status into state law is therefore more than just a local shift—it could influence future labor policy debates across the country, especially in states with similar gig workforce dynamics.
The bill passed in the Wisconsin Assembly with a vote of 56-36. Four Democrats crossed the aisle to support it. It passed the Senate by a narrow 17-15 margin, with Republican Sen. Steve Nass joining all Democrats in opposition. The political split signals how contentious the issue has become, not only between parties but within them.
Governor Tony Evers has not yet indicated whether he will sign the bill. His decision will likely spark strong reactions from both sides, and potentially define labor policy in Wisconsin for years to come.
A Separate Victory for Online Safety: Bradyn’s Law
On the same day lawmakers passed the gig worker legislation, the Wisconsin Assembly also approved a separate, bipartisan bill called Bradyn’s Law, aimed at criminalizing “sextortion.” The bill introduces a new felony charge for those who coerce or threaten individuals—especially minors—into sharing sexual images or performing sexual acts.
Sextortion is now punishable by up to six years in prison, with harsher penalties when the victim is under 18 and the perpetrator is four or more years older. The bill is named after Bradyn Bohn, a 15-year-old boy from Marathon County who tragically took his own life after being targeted by online scammers.
Lawmakers and advocates praised the bill as a crucial step in fighting the growing digital exploitation of children and teens. According to the FBI, cases of sextortion have been on the rise, often with devastating consequences. Bradyn’s Law not only criminalizes this behavior but also empowers prosecutors to pursue murder charges if a death by suicide can be linked to sextortion.
What’s Next for Wisconsin?
Governor Evers now faces two important decisions. One, whether to make Wisconsin the first state to formally implement portable benefits and solidify the independent contractor status of gig workers. Two, whether to sign Bradyn’s Law and formally criminalize sextortion with the possibility of associated homicide charges.
Both bills signal that Wisconsin is moving boldly on labor and justice issues, though not without controversy. The outcomes will not only shape the daily lives of thousands of Wisconsinites—from gig drivers to grieving families—but also help define the broader direction of employment rights and digital safety in the United States.
