Offer gig workers health insurance without forcing them into 9-to-5 jobs

Whether navigating Atlanta’s traffic for a rideshare platform, managing logistics near the Port of Savannah, or freelancing in the state’s booming film industry, Georgians are joining the independent economy in record numbers.

They choose this path for a clear reason: the freedom to set their own schedules and control their professional lives.

This trend is more than a fad; it is a structural shift in Georgia’s labor market. According to the Georgia Chamber of Commerce, over 40% of Georgia workers are part of the gig economy, a figure projected to rise to over 50% by 2030.

Georgia currently ranks fifth nationally in the number of business applications filed, with applications increasing by over 39% since 2019. However, the reality is that only 4% of these applications are expected to form into employer firms within a year, meaning the vast majority of Georgia’s entrepreneurial energy is directed toward independent, solo-operator roles.

Currently, 10.2% of Georgia households report self-employment income, representing a primary workforce of more than 1 million residents.

Peach State ‘gray area’ hurts gig workers

However, while these workers enjoy being their own boss, their independence comes at a steep cost. Traditional employees typically receive employer-provided health insurance, retirement savings and disability protection. Independent workers are left to provide these on their own.

The Congressional Research Service highlights a significant “benefits gap,” where only 14% of independent workers have access to employer-style health benefits.

In Georgia, as reported by the R Street Institute, the results are stark: roughly 28% of gig workers report that they wish they had health insurance but cannot access or afford it. This vulnerability leaves thousands of Georgia families just one illness or injury away from financial disaster.

This is not inevitable. Current laws in Georgia create a “gray area” that prevents platforms from helping their workers.

Justan Rice is the director of state government affairs at the Libertas Institute. (Courtesy)

However, while these workers enjoy being their own boss, their independence comes at a steep cost. Traditional employees typically receive employer-provided health insurance, retirement savings and disability protection. Independent workers are left to provide these on their own.

The Congressional Research Service highlights a significant “benefits gap,” where only 14% of independent workers have access to employer-style health benefits.

In Georgia, as reported by the R Street Institute, the results are stark: roughly 28% of gig workers report that they wish they had health insurance but cannot access or afford it. This vulnerability leaves thousands of Georgia families just one illness or injury away from financial disaster.

This is not inevitable. Current laws in Georgia create a “gray area” that prevents platforms from helping their workers.

Platforms that want to contribute to independent worker benefits risk being forced to reclassify those workers as employees, which would destroy the very flexibility those workers value. The system designed to protect workers now leaves a massive share of the state’s workforce facing a false choice between independence and security.

This legislation would create an option

There is a better way. Voluntary portable benefits legislation, recently introduced in the Georgia House as House Bill 987, offers a path forward.

The concept is straightforward: Let platforms make voluntary contributions to portable benefit accounts, similar to traditional employer contributions. This does not create an employment relationship; workers keep their independence while gaining access to health coverage, retirement savings, and emergency funds.

We already have proof that this works. A recent DoorDash pilot program in Georgia allowed “Dashers” to receive contributions equal to 4% of their pre-tip earnings into portable savings accounts.

The results were overwhelming: nearly 75% of participants gained access to benefits they otherwise would not have had. Georgia should follow the lead of states like Tennessee and Alabama by codifying this “safe harbor” into law.

Why this matters

Data confirms that solo-run establishments are the primary engine of Georgia’s job growth. In Middle Georgia alone, as indicated by the Region 6 Workforce Development Plan, nearly all regional employment growth between 2018 and 2022 came from an increase in proprietors — a nearly 30% jump — while traditional wage and salary jobs fluctuated.

Furthermore, these independent workers face an “administrative penalty”; the IRS levied a record $7 billion in tax penalties in 2023, largely against freelancers and gig workers who struggled to navigate complex quarterly tax requirements.

For these workers, portable benefits mean security that follows them from job to job. For businesses, this legislation provides the legal clarity needed to attract talent without the fear of reclassification battles.

For the state, the economic benefits are clear: This system is privately funded and reduces the burden on public assistance programs by ensuring more Georgians are privately insured and saving for retirement.

Addressing the skeptics

Some argue we should simply force these workers to become traditional employees. But that ignores what workers actually want.

According to the Bureau of Labor and Statistics, roughly 80% of independent workers prefer to remain contractors because they value the flexibility to set their own schedules and choose their own projects.