Freelancing is no longer a niche career path—it’s a fundamental part of the modern economy. In industries like commercial real estate, construction, and tech, professionals are increasingly opting for independent work, valuing flexibility over traditional employment structures. But as freelancing grows, so do the policy debates surrounding it.

While some states aim to “protect” gig workers by pushing companies to classify them as employees, others are doubling down on freelancer-friendly policies, ensuring businesses and workers alike have the flexibility to operate on their own terms. Meanwhile, a much larger question looms: Should access to essential benefits—especially health insurance—still be tied to full-time employment?

As the founder of Aedifico, a platform designed to connect businesses with specialized freelance talent, I’m keeping a close eye on how these policies evolve. Some encourage freelancing, while others risk eliminating it altogether. Here’s what I’m watching.

The Freelancer Dilemma: Striking the Right Balance

Freelancing is often misunderstood by policymakers. Some believe gig work is exploitative and should be minimized, while others see it as an essential evolution of work. The reality is that freelancers don’t want to be “protected” in ways that strip away their autonomy.

For businesses, hiring independent professionals allows them to scale efficiently, access specialized expertise, and stay agile in fluctuating markets. For freelancers, independent work provides control over projects, schedules, and income. The challenge? Many existing labor laws were written for a different era—one where work was full-time, office-based, and employer-driven.

That’s why policies that govern freelancing need to be carefully crafted. Some recent attempts to regulate gig work have backfired, while others have successfully created more opportunities.

Policies that Impact Freelancers (For Better or Worse)

AB5 in California: When Regulation Backfires

One of the most controversial freelancer-related laws in recent years is AB5, which went into effect in California in 2020. The goal was to prevent companies from misclassifying employees as independent contractors, particularly in gig economy jobs like Uber and Lyft drivers. However, the law’s impact extended far beyond rideshare companies, hitting creative professionals, consultants, and small business owners who rely on flexible freelance arrangements.

The law introduced the ABC Test, which makes it extremely difficult for businesses to legally classify someone as a contractor. Instead of hiring freelancers as employees, many companies simply stopped working with California-based freelancers altogether.

The Fallout and Exemptions

The backlash was immediate. Industries like journalism, entertainment, and consulting suffered, and lawmakers were forced to pass exemptions for specific professions, though many freelancers were still left without work. Some businesses relocated their freelance contracts outside of California, pushing skilled professionals to seek work in less restrictive states.

California’s AB5 is an example of what happens when policies fail to reflect the realities of modern work. Rather than empowering freelancers, it made their careers more difficult.

Texas: A Haven for Freelancers?

While California has made freelancing more difficult, Texas has taken the opposite approach. With a business-friendly regulatory environment, Texas allows companies to hire independent contractors without the same legal hurdles seen in states like California.

This doesn’t mean Texas ignores worker protections—it simply recognizes that freelancing isn’t inherently exploitative. Instead of forcing companies to hire workers as full-time employees, Texas law allows independent professionals to operate on their own terms, encouraging entrepreneurship and contract-based work.

For freelancers in industries like real estate, construction, and tech, this flexibility can be a game-changer. It means businesses can hire specialized talent without the fear of misclassification lawsuits, and workers can maintain their autonomy without unnecessary government intervention.

Other States Doing it Right

A few other states have taken different approaches to fostering freelancer-friendly environments:

• Tennessee: No state income tax, making it financially advantageous for freelancers. Nashville has also become a growing hub for independent professionals, with an expanding coworking ecosystem.
• Georgia: A balance of low costs and high demand for freelance services, creating a strong gig economy.
• Washington: High self-employment rates and a strong demand for independent work, with an infrastructure that supports remote professionals.

While each state approaches freelancer policy differently, the key takeaway is clear: More flexible policies create better opportunities for independent professionals and the businesses that hire them.

Decoupling Health Insurance from Employment: A Freelancers Dream?

One of the biggest barriers preventing more people from freelancing is health insurance. In the U.S., benefits like healthcare, retirement plans, and unemployment insurance are largely tied to full-time employment. This creates a golden handcuff effect, where people stay in jobs they dislike because leaving would mean losing essential benefits.

What’s Being Proposed?

Some policymakers and advocacy groups are pushing to decouple health insurance from employment, making benefits more portable for freelancers and independent workers. Potential solutions include:

• Expanding Affordable Care Act (ACA) subsidies to make individual health plans more affordable.
• Creating freelancer-specific insurance pools, allowing independent workers to negotiate better rates.
• Establishing a public option, so individuals have access to affordable healthcare without needing an employer.

The challenge? The U.S. healthcare system is complex, and major reforms move at a glacial pace. But if policies continue to evolve in favor of portable benefits, it could open the doors for millions of workers to confidently transition to freelancing.

Current Health Insurance Options for Freelancers

While broad policy changes are still developing, freelancers currently have a few ways to secure health insurance:

• Health Insurance Marketplaces: The ACA Marketplace offers individual health plans with potential subsidies based on income.
• Professional Organizations: Groups like the Freelancers Union provide access to health insurance plans tailored for independent workers.
• Spouse’s Policy: If applicable, joining a spouse’s employer-sponsored health plan can be a cost-effective solution.
• COBRA: Allows individuals to continue their previous employer’s health coverage, though often at a higher cost.
• Short-Term Health Insurance: Temporary plans for those in transitional periods, though they may have coverage limitations.

Navigating health insurance as a freelancer requires research, but the push for more flexible benefits is growing. If policymakers and businesses take the right steps, access to affordable, portable healthcare could remove one of the biggest barriers preventing workers from going independent.

Final Thoughts: The Path Forward

Freelancing isn’t going away. If anything, it’s becoming a dominant force in industries like commercial real estate, construction, and tech. But for freelancing to thrive, policymakers must create environments that support—not restrict—independent work.

The future of work is about flexibility, autonomy, and choice. While states like California have made freelancing more difficult, places like Texas and Tennessee have embraced it. Meanwhile, the fight for portable healthcare could be the key to unlocking even more independent work opportunities.

As I continue to build Aedifico, I’m watching these policies closely—because the decisions made today will shape the freelancer economy of tomorrow.

What policies are you watching? Let’s discuss.