WASHINGTON – Today, U.S. Senators Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Tim Scott (R-SC), and Rand Paul (R-KY) unveiled a legislative package modernizing federal labor law to empower 27 million independent workers to access portable workplace benefits, like health care and retirement. The package will also provide consistency and clarity in how an independent contractor is defined, making it easier for workers to find jobs that allow for flexibility and independence. This is part of Cassidy’s year-long legislative effort to strengthen workplace benefits for independent workers.
“Outdated labor laws should not prevent workers from receiving health care or saving for a secure retirement,” said Dr. Cassidy. “Modernizing our federal labor laws ensures all independent workers can access workplace benefits without losing their flexibility to work how and when they want.”
"Empowering our workers with modern tools and flexible opportunities is essential for strengthening our economy and ensuring they can succeed in today's dynamic job market. The Modern Worker Empowerment Act reflects our commitment to innovation, flexibility, and growth for all Americans," said Senator Scott.
“The Association Health Plans Act gives small businesses and individuals the leverage to negotiate collectively for lower health insurance and lower drug prices. Additionally, the CBO previously estimated that 400,000 uninsured would gain coverage under AHPs and over 3 million people would switch coverage to AHPs,” said Dr. Paul.
The vast majority of independent workers prefer alternative work arrangements to traditional [“9 to 5”] employment, and 80 percent of these workers would like access to workplace benefits. Yet decades-old federal labor and employment laws, including the Fair Labor Standards Act of 1938 and the National Labor Relations Act of 1935, prevent independent workers from accessing common workplace benefits.
The legislative package includes:
Organizations supporting the Unlocking Benefits for Independent Workers Act include:
“We appreciate Senator Cassidy’s consistent leadership in supporting independent workers and commitment to advancing a dialogue about portable benefits. The Unlocking Benefits for Independent Workers Act is an important step toward addressing some of the federal legal hurdles that complicate efforts to connect independent contractors with portable benefits while ensuring that the millions of Americans who choose to earn on their own terms can continue doing so without risking the independence and flexibility they value. Flex looks forward to working with Senator Cassidy and other forward-thinking policymakers as there is additional work to be done on this issue at the state and federal levels,” said Kristin Sharp, CEO, Flex Association.
“We applaud Sen. Cassidy for striving to ensure independent contractors can be protected and receive benefits similar to employees without jeopardizing their entrepreneurship or independence. The Unlocking Benefits for Independent Workers Act supports independent contractors and freelancers by allowing businesses to provide benefits without redefining worker status. In today’s evolving economy, flexible work shouldn’t come at the cost of healthcare or retirement security. This legislation helps ensure that all American workers – regardless of classification – can have access to benefits like health care and retirement plans,” said F. Vincent Vernuccio, J.D., President, Institute for the American Worker.
“Under current law, businesses face challenges in offering independent workers critical benefits that support their financial security without risking the workers' legal classification status. The Unlocking Benefits for Independent Workers Act seeks to address this issue by ensuring that the provision of benefits does not affect a worker’s classification determination. This legislative clarification would allow entities contracting with independent workers to offer certain benefits without compromising the workers' ability to maintain their business operations,” said David French, Executive Vice President of Government Relations, National Retail Federation.
"Independent Women's Voice is pleased to strongly support the “Unlocking Benefits for Independent Workers Act.” This bill would clear the way for independent contractors to secure portable benefits without sacrificing their flexibility. Women depend on flexibility and choose to work independently to balance important priorities, such as raising children, caregiving for aging parents, and managing their health issues. For those who cannot obtain benefits through traditional employment or spouses, portable benefits will be a game changer,” said Patrice Onwuka, Director of the Center for Economic Opportunity, Independent Women’s Voice
“By clarifying that the provision of benefits cannot be used to determine employment classification, this bill legalizes access to benefits for independent workers. This is a crucial step toward modernizing our labor policy to reflect the realities of today’s workforce. Millions of Americans earn income as independent workers—freelancers, app-based drivers, consultants, and creatives—yet they remain locked out of benefits simply because current law treats any effort to provide those benefits as a legal risk.
Surveys show that the vast majority of independent workers want to remain independent—but they also want access to portable benefits. The access to benefits would respect an independent worker’s choice, while creating space for states, localities, and private actors to experiment with portable benefit models that offer some financial security to workers who are outside of the traditional employment model,” said Liya Palagashvili, Senior Research Fellow and Director, Labor Policy Project
"The Unlocking Benefits for Independent Workers Act is a major step forward for independent workers and their business partners. Outdated laws have long forced workers seeking contributions for insurance or retirement benefits into rigid employee-employer roles or risk costly investigations from the U.S. Department of Labor’s Wage and Hour Division. This outdated approach has deterred businesses from offering non-cash benefits to self-employed workers, raising costs for insurance and other benefits for entrepreneurs. I applaud the bill’s sponsors for introducing this bill to empower independent workers to access critical insurance and benefits, enable businesses to provide them, and pave the way for more workers to achieve their dreams of business ownership,” said Jonathan Wolfson, former head of the Office of the Assistant Secretary for Policy, United States Department of Labor
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