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Sen. Bill Cassidy proposes a legislative measure, dubbed "portable benefits," aimed at self-employed and gig workers.

Legislators on Capitol Hill introduce new bills aiming to give freelancers and contract workers access to health insurance and retirement benefits.

Gig Workers Receive Portable Benefits Proposal from Senator Bill Cassidy
Gig Workers Receive Portable Benefits Proposal from Senator Bill Cassidy

Sen. Bill Cassidy proposes a legislative measure, dubbed "portable benefits," aimed at self-employed and gig workers.

A New Bill Aims to Boost Benefits for Independent Workers

A new bill, the "Unlocking Benefits for Independent Workers Act," is currently under consideration in the Senate Health, Education, Labor, and Pensions Committee, chaired by Sen. Bill Cassidy. This legislation, introduced by Sen. Cassidy along with Sens. Tim Scott and Rand Paul, is designed to improve access to workplace benefits for gig workers, independent contractors, and freelancers.

The bill seeks to modernize outdated labor laws that currently restrict gig workers from accessing employer-sponsored benefits. One key aspect of the legislation is the creation of portable benefit plans, where benefits follow an employee from job to job, and each company contributes to an employee's account. This could lead to a system where benefits are no longer tied to a single job, providing more security for independent workers.

However, it's important to note that the bill does not require companies to offer benefits. Instead, it aims to create a "safe harbor" for companies, allowing them to voluntarily offer benefits while shielding them from worker misclassification lawsuits. This provision is intended to encourage companies to provide benefits to their independent workers.

The bill is also expected to help gig workers gain access to health insurance and retirement plans. For instance, it clarifies legal frameworks to allow gig workers to participate in pooled employer retirement plans (PEPs), which are usually available only to traditional employees. Under the proposed changes, trade associations could serve as surrogate employers, facilitating gig workers’ contributions to retirement plans as if they were company employees.

While the bill has received support from some quarters, it has also faced criticism from some lawmakers on the left. Sen. Bernie Sanders (I-Vt.) has expressed concerns that the bill could potentially make it easier for large corporations to misclassify workers as independent contractors to avoid paying decent wages and benefits. Sanders believes the bill's "safe harbor provisions" could allow large corporations to break labor laws.

Rideshare driver and advocate Scott Singer has also expressed a desire for legislation that goes beyond the "Unlocking Benefits for Independent Workers Act." Singer, who has been vocal about the need for sick leave and paid time off for gig workers, mentioned that the current bill does not address these benefits.

Despite these criticisms, the bill has been hailed as a step forward for workers by George Mason University's Labor Policy Project Director Liya Palagashvili. Palagashvili views the bill as beneficial for gig workers, as it is a move towards providing them with health insurance and retirement plans. Singer, on the other hand, considers the bill as a "baby step" and prefers a more definite approach that includes benefits like sick leave and paid time off.

In conclusion, the "Unlocking Benefits for Independent Workers Act" is a significant step towards improving the working conditions of gig workers, independent contractors, and freelancers. While it faces criticisms, the bill's potential to unlock portable benefits for independent workers and provide them with health care and retirement security while preserving their freedom to choose how and when they work is undeniable.

  1. The "Unlocking Benefits for Independent Workers Act" is a new piece of legislation under consideration in the Senate Health, Education, Labor, and Pensions Committee, which seeks to modernize current labor laws and improve access to workplace benefits for gig workers, independent contractors, and freelancers.
  2. The policy-and-legislation aims to create portable benefit plans, an innovative solution that follows an employee's benefits from job to job, potentially providing more health-and-wellness security for independent workers.
  3. The bill's introduction, workshop, and review in the Senate are crucial pieces of general-news, as the bill's potential impact on science (in terms of health research and retirement planning) and the workplace-wellness of numerous individuals creates a significant ripple in American politics.

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