A group of U.S. Senators has introduced a legislative package that modernizes federal labor laws and would allow independent workers to access portable workplace benefits.
U.S. Sens. Bill Cassidy, MD (R-LA), Tim Scott (R-SC) and Rand Paul (R-KY) said the package would help 27 million workers access benefits like health care and retirement. The package would also provide consistency and clarity on how an independent contractor is defined, the law makers said and make it easier for workers to find jobs that provide flexibility and independence.
Cassidy, the chair of the Senate Health, Education, Labor and Pensions Committee, said the legislation is part of his 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“Outdated labor laws should not prevent workers from receiving health care or saving for a secure retirement,” Cassidy said. “Modernizing our federal labor laws ensures all independent workers can access workplace benefits without losing their flexibility to work how and when they want.”
The package includes four bills – the Unlocking Benefits for Independent Workers Act and the Independent Retirement Fairness Act from Cassidy, the Modern Worker Empowerment Act from Scott, and the Association Health Plans Act from Paul.
The Unlocking Benefits act establishes a safe harbor under federal law for companies to voluntarily provide benefits, while the Independent Retirement Fairness Act would provide independent workers with the opportunity to participate in retirement plans. Scott’s Modern Worker Empowerment Act would institute a single employment test under federal law to determine if a worker is an employee or a contractor, and Paul’s Association Health Plans Act increases affordable health coverage options for self-employed Americans and employees of small businesses by amending the Employee Retirement Income Security Act of 1974 and giving small business employees, sole proprietors and gig workers the ability to join together and access health insurance through Association Health Plans.
“Then Association Health Plans Act gives small businesses and individuals the leverage to negotiate collectively for lower health insurance and lower drug prices,” Paul said. “Additionally, the CBO previously estimated that 400,000 uninsured would gain coverage under AHPs and over 3 million people would switch coverage to AHPs.”
Currently, while 80 percent of independent workers would like access to workplace benefits, decades old federal labor and employment law prevent them from doing so. The legislative package is supported by independent worker organizations like Flex Association, the Institute for the American Worker and the National Retail Federation, to name a few.
“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,” Kristin Sharp, CEO of Flex Association.