For Wisconsin residents, Assembly Bill 269 is a game-changer. The new legislation has been introduced and passed in both the State Assembly and Senate to officially classify transportation network and delivery drivers as independent contractors instead of employees while allowing for the establishment of “portable benefits.” By ushering in the new change, drivers who use platforms like Uber, Lyft, DoorDash, or Instacart can opt for greater worker flexibility and benefits specific to their own work styles.
Critically, the law enables the creation of “portable benefits” for the contractors. These benefits, funded in part by gig platforms, allow drivers to receive support in the form of paid leave, healthcare stipends, or retirement contributions. Additionally, these benefits can be tailored to the needs of individual workers, so that they can opt for their preferred mix of paid leave, healthcare, or retirement benefits. Under AB 269’s provisions, drivers can begin to receive such benefits without losing the independent contractor status that protects their ability to set their own schedules and work for themselves.
By supporting the classification of these drivers as independent contractors, Wisconsin is introducing more choice for workers, not less. Workers who prefer to take their full earnings as income up front can do so. At the same time, those who want to build long-term security through portable benefits programs can allocate more of their earnings toward retirement or healthcare benefits. That’s the beauty of AB 269: it allows for worker flexibility and individual choice, the defining features and demands of today’s workforce.
On top of the many benefits AB 269 provides, it has great popular support among drivers. DoorDash reported that hundreds of drivers and customers wrote to the Governor, urging him to sign the legislation. In fact, there was even some bipartisan support in the State Assembly, with Rep. Sylvia Ortiz-Velez (D-Milwaukee) saying, “I heard countless testimonies from drivers who wanted the flexibility of being independent contractors.”
Clearly, AB 269 is popular and will be a great success for drivers in Wisconsin. Americans for Tax Reform commends the Wisconsin legislature and urges Governor Tony Evers to sign this bill into law, for the sake of the Wisconsin worker.
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Author: Frank Anstett
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