A law has been proposed in Texas that would allow companies to dodge unemployment taxes by classifying gig economy laborers as independent contractors. This proposal has upset advocacy groups, as well as small business owners who fear that tech companies will become more difficult to compete with if they are able to avoid the costs associated with employee classification. The owner of a small cleaning service company explained that he provides numerous benefits to his employees, including health insurance and paid vacation. Tech companies would be able to avoid all of the aforementioned costs if their employees were to be classified as independent contractors, thus allowing them to charge their customers lower fees.
See "Texas rule limiting worker benefits in gig economy would hurt local businesses, owners say", Erin Douglas, The Houston Chronicle, April 8, 2019