Nebraska legislature approves measure classifying gig economy workers as independent contractors

The Nebraska Legislature has approved a measure classifying some gig economy workers as independent contractors, according to their website.

LB229, introduced by Sen. Bob Hallstrom (R), was approved Monday, with 33 voting in favor and 15 opposed. Under the measure, rideshare and some delivery drivers, via state law, become independent contractors.

Nebraska Sen. John Cavanaugh (D) slammed the measure on Monday in a report from The Omaha World-Herald, saying that LB229 “shifts the balance of power from currently more balanced — although still in favor of these corporations — but shifts it more in the favor of the corporations and (against) these workers.”

Earlier this year, the California Supreme Court ruled that Uber and Lyft drivers could be classified as independent contractors rather than employees. The court backed a ballot measure that had begun as an effort of last resort by companies like DoorDash and Instacart to try and not classify drivers as employees and extend worker benefits.

In 2022, Washington state passed a law setting forth a standard of minimum pay and benefits for drivers contracting with ride-hailing companies. It became the first state to create not just a baseline for earnings but a paid sick leave policy as well for independent contractors.

The Hill has reached out to Hallstrom for comment.