Catherwood LibraryILR School

Senator Bill Cassidy (R-LA) has proposed a federal plan to offer health and retirement benefits to gig workers without reclassifying them as employees. His plan would create a “safe harbor” allowing companies to provide these benefits to independent contractors while avoiding full employment obligations. Cassidy also suggests a unified federal test to determine worker status, replacing the patchwork of standards currently used. While some see this as a modern solution for gig workers, critics warn it could fuel worker misclassification and undermine protections under existing labor laws. The proposal comes amid state-level efforts and ongoing legal battles over gig worker rights.