A bipartisan, bicameral group of lawmakers has reintroduced legislation to test innovative portable benefit designs for the ever-expanding independent U.S. workforce.
Sens. Mark Warner (D-VA) and Todd Young (R-IN), along with Rep. Suzan DelBene (D-WA), introduced the Portable Benefits for Independent Workers Pilot Program Act, which seeks to provide gig workers with access to social insurance protections typically provided through traditional full-time employment.
The legislation would establish a portable benefits pilot program at the U.S. Department of Labor. It authorizes a total of $20 million for competitive grants to states, local governments and nonprofits for pilot projects to design, implement and evaluate new models or assess and improve existing models for portable benefits for independent workers, such as contractors, temporary workers and self-employed workers.
Eligible models should provide any number of work-related benefits and protections—such as retirement savings, workers compensation, life or disability insurance, sick leave, training and educational benefits, health care and more. In awarding the grants, the Secretary of Labor would be directed to prioritize models that can be replicated on a large scale or at the national level. In addition, the legislation instructs that the programs must go beyond focusing solely on retirement-related benefits.
“As the workforce changes, it is increasingly important that we provide workers with an ability to access more flexible benefits that can be carried to multiple jobs across a day, a year and even a career,” Warner said in a statement. “This program will encourage experimentation at the state and local levels to find ways we can better support our independent, 21st Century workforce.”
“Job opportunities in the gig economy provide workers with utmost flexibility, which is increasingly needed as parents continue to adjust schedules due to the pandemic,” Young stated. “Supporting portable benefit options helps uncover creative solutions to addressing the needs of our drastically changing workforce.”
Added DelBene: “The way we work is changing rapidly but our laws aren’t keeping up. We need to ensure we have an economy that works for everyone and that includes making sure that gig economy workers can access the same types of benefits as traditional jobs. This legislation would take an important step forward on expanding the portability of benefits.”
DelBene and Warner originally introduced this legislation in 2017. The bill will be referred to the Education and Labor Committee in the House of Representatives and the Health, Education, Labor and Pensions Committee in the Senate.
Warner also recently joined with Rep. Jim Himes (D-CT) to introduce the Portable Retirement and Investment Account (PRIA) Act of 2021. Touted as a way to help gig workers, part-time workers and those without access to an employer-sponsored account, this legislation would create universal, portable retirement accounts for every American at birth by providing a PRIA at the same time they receive a Social Security number.
