You'd think we'd have a straight answer by now on whether gig workers are considered employees or contractors because the debate has been ongoing for decades. But as we head through 2026, it's still convoluted. App-based companies are winning, but those victories are far from permanent.

California set the best example with Proposition 22, the measure that keeps drivers as contractors. It just cleared its biggest legal hurdle after the state Supreme Court backed it. That momentum is spreading. A federal court in Pennsylvania recently killed an 8-year lawsuit against Uber Black. Platforms like DoorDash and Lyft are stacking up wins in various states through a mix of court rulings and background deals.

But the story doesn't end here. New Jersey just rolled out new rules that push drivers much closer to being actual employees. It's a stark contrast to California but a clear sign that your rights depend entirely on which state you're in.

The stakes come down to benefits. Employees receive minimum wage, overtime, and unemployment insurance. Contractors generally do not, but they trade security for the flexible schedules many drivers prefer. Prop 22 tried to find a middle ground by offering limited perks like health stipends without an "employee" label. It was an awkward compromise that didn't fully satisfy everyone, but it is becoming a template for other states.

The real issue is that our labor laws are outdated. They rely on a binary "this" or "that" system that doesn't work for people today. We're trying to use a blunt tool to fix a nuanced arrangement, and so far, no one has figured out how to protect workers without killing the flexibility they desire.

Some states like Utah are experimenting with a third option called, "portable benefits." Instead of benefits being tied to one company, they follow the workers, similarly to other countries around the world. Platforms play a small fee per gig into the fund that the worker draws from. It's a model that addresses the lack of a safety net without trying to force gig workers into a traditional 9-to-5.

One of the core problems is that we've maintained rigid labels for what makes an employee that isn't aligned with reality. This uncertainty won't go away until we stop battling over old definitions and start building a flexible system that works for people.

For drivers, the best move is to stop waiting for a federal fix, join advocacy groups to help shape regional laws, and keep an eye on local policy shifts. For platforms, stop trying to fight the old model and invest in a "portable benefits" framework now to avoid misclassification lawsuits.