Developing Portable Benefits Solutions
Our nation’s labor laws are currently structured so that workers have the benefits of traditional employment or the autonomy of independent work—but not both.
Landmark Principles for Portable Benefits
The principles are built on 6 key elements:
Flexibility
App-based workers should be able to choose how to use their portable benefits, including for, but not limited to, retirement, health, and paid leave.
Proportionality
App-based platform contributions should be in proportion to how much app-based workers earn. App-based earners should also be able to contribute to their account.
Portability
Benefits should be tied to the app-based worker, enabling them to contribute to and use the account regardless of which app-based platform(s) they are using.
Certainty
App-based workers and platforms that are covered would be guided by a national test governing their classification as independent contractors and the workers’ relationship with app-based platforms.
Efficiency
Such portable benefits accounts should be efficiently managed by approved third-party institutions.
Parity
Independent contractors deriving their benefits from a portable account should be eligible for the same kinds of tax breaks and pre-tax contributions as employees.
Learn More
The Portable Benefits for Independent Workers Pilot Program Act
U.S. Sens. Mark R. Warner (D-VA) and Todd Young (R-IN) joined by U.S. Rep. Suzan DelBene (D-WA-01) have introduced legislation to test innovative portable benefits designs for the growing independent workforce. The Portable Benefits for Independent Workers Pilot Program Act seeks to provide workers with access to insurance protections typically provided through traditional full-time employment. Read more »
“Flex thanks Senators Warner and Young, Congresswoman DelBene and all the co-sponsors of this bill for acknowledging that while work in the 21st century has evolved, our laws have not. We need a third way—like portable benefits—that allows app-based earners to maintain their flexibility and freedom while also providing them access to benefits.”
Kristin Sharp, CEO, Flex
