Republican Senators Move to Ensure Portable Benefits and Employment Flexibility

At last week’s Senate HELP hearing, Republicans stressed the need for Congress to promote flexible work for all Americans. Senator Bill Cassidy (R-La.), Chair of the U.S. Senate Committee on Health, Education, Labor, and Pensions (HELP), outlined the goal succinctly, saying, “So whether it’s a hair stylist, musician artist, (in my state) a swamp tour guide, a rideshare driver, a software designer, and independent truck driver, none of them should have to choose between a flexible work schedule and having a 401(k) or health coverage.” 

In line with these principles, Senator Cassidy, alongside Sens. Tim Scott (R-S.C.) and Rand Paul (R-Ky.), have introduced a series of bills to empower independent contractors by expanding access to portable benefits, ones which stick with the worker from job to job. In the modern gig economy, old regulations under the W-2 are simply out of date. A modern flexible workforce demands modern flexible portable benefits. 

For years now, contractors have been fighting an uphill battle encouraging governments nationwide to strengthen support for flexible and self-employed workers. But in recent months, huge strides have been made for the nearly 12 million Americans who are independent contractors. Amidst this reform, Chair Cassidy conducted research and policy proposals on the issue in 2024. In conjunction with state initiatives, he delivered a whitepaper earlier in the term. 

Just last month, the Wisconsin legislature moved to provide these portable benefits for their state by reclassifying gig workers as contractors, rather than employees. The bipartisan bill, while having passed both the legislatures, has still not been signed by Democratic Governor Tony Evers. This makes the action by Republican Senators on HELP even more important nationwide and for Wisconsin, whose representatives have voiced their support for portable benefits and worker flexibility, requests which have not yet been fulfilled.

In addition to establishing the option for companies to provide portable benefits to independent contractors, the legislative package clarified bureaucratic definitions of employment to safeguard against further concerns. Senator Rand Paul also introduced the Association Health Plans Act to expand access to association health plans (AHPs) for more Americans. By laxing existing federal regulations, AHPs will be issued more easily to workers at small businesses and the self-employed, who together make up the majority of employed Americans. Senator Cassidy’s Independent Retirement Fairness Act would also expand access to retirement benefit plans for independent workers.

These policies are sensible, pro-business, and pro-worker, allowing for modern adaptations to a changing work environment. They allow for the workplace preferences of independent contractors while driving market innovation.