In Utah’s gig economy, the legal distinction between employee and independent contractor status remains crucial but complex, with no specific new laws directly addressing gig worker classification or workplace benefits as of 2025. Gig workers—freelancers, rideshare drivers, delivery workers, and consultants—are generally treated as independent contractors. This status means they do not receive benefits, paid leave, or tax withholding from employers and must handle self-employment taxes, including Social Security and Medicare contributions.
Utah has not enacted gig economy-specific protections yet but has ongoing debates and legislative interest in expanding protections and benefit options for independent workers. For example, Utah’s S.B. 233 (Portable Benefit Plan) from 2023 sets a framework for voluntary portable benefits for gig workers, offering a pathway for benefit access despite independent contractor status. These plans can include health insurance, retirement savings, and paid leave, supported by government and private programs.
Key points about Utah’s gig economy laws and worker rights:
Gig workers are mostly classified as independent contractors under state and federal law.
Independent contractors bear responsibility for taxes, insurance, and benefits.
No current Utah laws mandate employer-provided benefits or minimum wage protections for gig workers.
Legislative proposals encourage voluntary portable benefit plans to improve gig worker security.
Misclassification remains a legal risk for companies and workers, but Utah lacks specific gig worker misclassification statutes.
Gig economy drivers in Utah also face specific background check and compliance regulations for public safety.
This regulatory environment emphasizes flexibility at the cost of traditional employment protections, with policy efforts ongoing to enhance gig worker rights through portable benefits and improved classification clarity.
SOURCES
[1](https://www.prophecynewswatch.com/article.cfm?recent_news_id=8433)
[2](https://attorney.aksi.co/new-labor-laws-2025-utah)
[3](https://prophecynewswatch.com/article.cfm?recent_news_id=8433)
[4](https://www.mercatus.org/research/state-testimonies/utahs-portable-benefits-bill-supporting-gig-workers-and-independent-0)
[5](https://gcheck.com/blog/utah-gig-economy-driver-background-checks/)
