A group of Republican senators have released legislation that would make it easier for companies to provide benefits like healthcare to independent workers, the latest move in the fight over the treatment of independent workers and the gig economy.
Sens. Bill Cassidy (R-LA), chairman of the Senate Health, Education, Labor, and Pensions Committee, Tim Scott (R-SC), and Rand Paul (R-KY) announced the plan this week. The legislation is meant to modernize labor laws in the U.S. and make it easier for millions of independent and gig workers to access so-called “portable benefits.”
“Our labor laws are over 100 years old, but they are dictating the contractor, contractee, the independent contractor economy,” Cassidy told the Washington Examiner during an interview.
Cassidy said that the legislation would affect some 27 million workers who aren’t tethered to a specific employer but rather work as independent contractors or gig workers, for instance, truck drivers or ride-share drivers.
Essentially, the legislation establishes a federal safe harbor allowing companies to voluntarily offer benefits without taking on employment liabilities, such as workers compensation and unemployment. The safe harbor applies to any benefit commonly provided to full-time employees, such as retirement and healthcare benefits.
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Author: Marty Kaufmann
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