Revolutionary Benefit Changes for Gig Workers Through Target-Owned Company
In a groundbreaking move for workers in the gig economy, a new law in Utah is paving the way for freelancers to gain more benefits without being classified as permanent employees. This legislation has garnered praise for its potential to bring significant changes to how gig workers, such as those employed by Shipt—a delivery service owned by retail giant Target—access essential benefits like healthcare.
The CEO of Stride Healthcare, a firm working closely with Shipt to facilitate affordable healthcare solutions for drivers, highlighted the importance of this legislative change. “It’s a big deal and a simple piece of legislation,” remarked Noah Lang, applauding the flexibility it introduces for companies to support their 1099 workers more substantively. Traditional gig workers often miss out on the workplace benefits their permanently employed counterparts take for granted, and this law seeks to bridge that gap.
Stride Healthcare has responded proactively by launching Stride Contributions, a tool designed to simplify the process for companies wishing to contribute to their workers’ benefits. This innovation is aligned with the spirit of the Utah law and supports the creation of a more supportive environment for freelance and gig economy workers.
The state’s leadership, including Governor Spencer Cox and State Senator John D Johnson, has shown strong support for the initiative. Governor Cox emphasized the benefits of such flexibility for both gig employees and traditional entrepreneurs in Utah, heralding a new era of portable benefits that could serve as a model for other regions.
Stride’s partnership with Shipt, which was formed in November of the previous year, has been a key step in this direction, enabling drivers to opt into dental and healthcare plans through the Stride platform. Stride’s approach offers personalized healthcare plans tailored to individual needs, alongside support to maximize plan benefits, including discounts and tax assistance. This service is particularly valuable during the Open Enrollment period from November 1 to January 15, during which Americans can adjust or subscribe to new health insurance plans.
A recent study revealed the pressing need for such services, with approximately 55% of gig workers expressing concerns over healthcare costs, and over 30% feeling overwhelmed by the process of finding suitable insurance. Stride’s initiatives are a direct response to these challenges, offering a lifeline to those struggling to navigate the complex healthcare landscape.
“We’re incredibly proud to be expanding our audience and partnering with Shipt to ensure shoppers and drivers everywhere have access to affordable healthcare coverage for themselves and their families,” stated Lang, reflecting on the partnership’s positive impact. Since its inception in 2014, Stride has been instrumental in helping millions of workers save more than $5 billion on taxes, further underscoring the significant benefits these changes bring to the gig economy workforce.
This groundbreaking approach not only empowers freelancers by enhancing their access to much-needed benefits but also sets a precedent for how companies can effectively support their gig workers, fostering a healthier, more sustainable gig economy across the board.
