Utah legislators have taken a significant step in redefining the relationship between companies and gig workers by passing a new law, SB233, during the 2023 session. This law allows companies that rely on gig workers, such as Uber, to contribute to flexible benefits packages for their workers without classifying them as employees. The goal of this law is to provide gig workers with access to affordable benefits while maintaining their independence.
The passage of this law has already led to tangible results, with portable benefits provider Stride announcing its first partnership with a Utah company. Shipt, a grocery delivery company owned by Target, will now contribute to portable benefits packages for its shoppers and delivery drivers. This move has been praised as a significant step forward in supporting the independent workforce in Utah.
One of the key features of flexible benefits plans is their ability to offer gig workers access to essential benefits such as health care, vision, and dental plans at pooled rates. These benefits are not tied to employment, allowing workers to carry them from gig to gig. This is a crucial development for gig workers who often do not receive traditional employee benefits despite providing essential services through platforms like Uber or Shipt.
While some skeptics question whether companies will willingly contribute to these benefits packages, advocates like Caden Rosenbaum, a senior policy advocate for the Libertas Institute, believe that it is in companies’ best interest to create better working environments for gig workers. By offering benefits, companies can attract and retain top talent, ultimately benefiting both parties.
The future of work in Utah is evolving, with a significant portion of working adults already engaging in gig work through various apps. While some, like Jeff Worthington of Utah’s AFL-CIO, may have reservations about the gig economy’s longevity, others like Noah Lang, co-founder and CEO of Stride, see it as the future of work. The gig economy offers individuals the flexibility of being their own boss, which can be empowering for many.
As the gig economy continues to grow and evolve, it is essential for employers and lawmakers to keep up with these changes. Legislation like SB233 in Utah represents a step in the right direction towards supporting gig workers and providing them with the benefits they deserve. By adapting to the needs of the modern workforce, Utah is setting an example for other states to follow in redefining the relationship between companies and gig workers.
