Several states are advancing workers' compensation reforms aimed at addressing the ongoing classification disputes in the gig economy. Proposed legislation would create a new category of coverage specifically designed for independent contractors who work primarily through digital platforms.

The reforms seek to balance the flexibility that gig workers value with the safety net that traditional employment provides. Under the proposed frameworks, platform companies would contribute to a portable benefits fund that workers could draw upon in case of work-related injuries.

Business groups have expressed mixed reactions, with some welcoming the clarity the reforms would bring while others worry about increased costs. Labor advocates argue the proposals don't go far enough and that full employee classification remains the best path to comprehensive worker protection.