The foundation of our work system is shifting once again. With renewed efforts around portable benefits and changes in independent contractor classification, we may finally be approaching a necessary reckoning: the employment system we rely on is outdated and hindering progress toward the future of work.
For decades, we have adhered to a rigid, binary model that divides workers strictly into two categories: full employees or independent contractors. While this made sense during the industrial era, it clashes with today’s economy, where innovation thrives on flexibility and workers increasingly seek autonomy. Yet instead of adapting, outdated laws have been layered onto new work realities, creating a confusing patchwork of legal standards and leaving workers without essential protections and benefits. This lack of clarity has stalled meaningful progress in evolving how work functions.
Can independent contracting truly be a choice?
When gig platforms first appeared—from virtual call centers to rideshare apps—the response from labor advocates was swift and decisive. California became the battleground with landmark court rulings like Dynamex and the enactment of AB5, which established a strict “ABC” test making it nearly impossible for such platforms to classify workers as independent contractors. Accompanied by tough enforcement that encouraged lawsuits with heavy fines, many startups were forced to shut down or drastically change. The legal approach was clear: restrict independent contracting.
And for a time, this strategy succeeded. Lawyers secured large settlements, companies faced steep penalties, and many platforms retreated or folded. But this approach overlooked a crucial reality: workers want choices in how they work.
Flexibility as a defining feature
Enter Uber. With its vast resources and willingness to challenge traditional regulations, Uber forced the nation to face an uncomfortable truth—flexibility isn’t a loophole, it’s a necessity. For millions, work flexibility is not a perk but an essential need.
Uber's model exposed a significant disconnect between outdated regulations and workers' lived experiences. While the company’s tactics drew criticism, it sparked a vital conversation about how work should be structured in the modern economy.
Having seen firsthand how single parents juggling multiple gigs, people with disabilities needing adaptable schedules, and caregivers balancing work and care all depend on flexible work arrangements, it’s clear this system isn’t just obsolete—it’s unfair. It excludes many not because they can’t work, but because the current structure doesn't accommodate their needs.
Reimagining work for today’s economy
Today, questions about worker classification, protections, and participation are not just legal debates—they are central to our economic future. To build an inclusive and innovative economy, we must redesign the underlying systems governing work.
The U.S. ties most benefits and protections to employment status, but the solution isn’t forcing everyone into traditional employment. Instead, we need to rethink how work is defined and supported.
Businesses are eager to engage workers on their terms but are often paralyzed by legal risks. Offering benefits to independent workers, like accident insurance or retirement plans, can trigger costly legal challenges and undermine business models. This stifles innovation and leaves workers without adequate safety nets, deterring companies from doing what’s right out of legal caution.
This is more than a labor issue—it’s a business imperative.
Steps forward
Fortunately, change is underway. Some states are piloting hybrid models. California’s Proposition 22, for instance, establishes a third work category that maintains independence while offering some protections. At the federal level, senators have introduced legislation to promote portable benefits and clarify legal definitions, signaling a shift toward more flexible frameworks.
Private companies are also innovating. DoorDash’s partnership with Stride Health, which provides independent workers access to health insurance and financial tools, exemplifies how businesses can support flexibility and fairness together.
What’s needed now is policy innovation that matches this spirit. That means decoupling benefits from employment status, enabling protections to follow workers regardless of job classification. It requires legal clarity and safe pathways for companies to support nontraditional workers. We must build systems reflecting how people actually work today, not the outdated models of the past.
The future of work is already here. The question remains whether our laws and leaders are ready to embrace it.