Senate Republicans Unveil Legislation to Expand Portable Benefits for Independent Workers

On July 7, Sens. Bill Cassidy, R-La., Tim Scott, R-S.C., and Rand Paul, R-Ky., introduced a legislative package designed to modernize labor laws and expand access to workplace benefits for the nation’s 27 million independent workers. The proposals focus on enabling voluntary benefits, streamlining employment classification standards, and increasing access to health care and retirement savings. Among the bills are measures to establish a federal safe harbor for providing portable benefits, create a consistent definition of “employee” under federal law, expand access to association health plans, and open existing retirement vehicles to independent workers.

This legislative push reflects Cassidy’s ongoing efforts to support nontraditional workers in a changing economy.

SHRM has continued to highlight the need for clarity in employment classification rules, warning that inconsistencies discourage businesses from offering independent workers access to training, benefits, and workplace protections. In its June 2024 response to a Senate request for information, SHRM urged lawmakers to adopt a uniform, cross-agency definition of “employee” to reduce risk and improve workplace outcomes for both employers and workers.

Stay tuned for important updates.