The Gig Economy’s Legal Landscape: Are You an Employee or Contractor in Delaware?

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The Gig Economy's Legal Landscape: Are You an Employee or Contractor in Delaware?

Delaware classifies gig workers as employees or independent contractors using a three-prong ABC test under its Unemployment Insurance laws, presuming employee status unless the worker meets all criteria for independence.​

Classification Test

To qualify as a contractor, the worker must be free from the hiring entity’s control in work performance, perform services outside the entity’s usual business, and operate an independent trade or business. Gig platforms like Uber or DoorDash often fail this test for drivers, leading to employee reclassifications in court rulings. The 2025 Wage Payment and Collection Act amendments reinforce this for minimum wage and overtime applicability.​

Gig Economy Protections

Employees gain rights to workers’ compensation, unemployment benefits, and paid sick leave, while contractors handle their own taxes and insurance. Misclassification penalties include back wages, fines up to $10,000 per violation, and DOL audits. Platforms must provide written contracts detailing status and comply with federal FLSA alongside state rules.​

Recent Developments

Delaware’s 2025 House Bill 200 expands protections by mandating expense reimbursements for employees using personal devices or vehicles in gig roles. No specific gig worker law exists, but ongoing DOL guidance targets app-based services amid national trends. Businesses face joint liability for subcontractors’ misclassifications.

SOURCES

[1](https://webserver.rilegislature.gov/BillText25/HouseText25/H5951.pdf)
[2](https://www.govtech.com/fs/Rhode-Island-Ready-to-Enter-Autonomous-Vehicle-Ecosystem.html)
[3](https://bottarolaw.com/blog/the-dangers-of-autonomous-cars-on-our-roads-what-rhode-island-drivers-need-to-know/)
[4](https://www.ncsl.org/transportation/autonomous-vehicles-legislation-database)
[5](https://www.thedriverlesscommute.com/wp-content/uploads/2025/10/Dentons-Global-Guide-to-Autonomous-Vehicles-2025.pdf)

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