U.S. Senators Bill Cassidy, Tim Scott, and Rand Paul have introduced a legislative package aimed at updating federal labor laws to enable 27 million independent workers to access portable workplace benefits such as health care and retirement plans. The proposed legislation seeks to clarify the definition of an independent contractor, providing greater consistency for those seeking flexible job opportunities.
Senator Cassidy emphasized the importance of modernizing labor laws: “Outdated labor laws should not prevent workers from receiving health care or saving for a secure retirement.” He believes these changes will allow independent workers to access benefits while maintaining their work flexibility.
Senator Scott highlighted the need for adaptability in today's job market: "Empowering our workers with modern tools and flexible opportunities is essential for strengthening our economy." Meanwhile, Senator Paul focused on healthcare access through Association Health Plans (AHPs), which he claims could extend coverage to 400,000 uninsured individuals.
The package includes several key proposals:
- Cassidy's Unlocking Benefits for Independent Workers Act, which establishes a safe harbor allowing companies to offer benefits typically available to full-time employees.
- Scott’s Modern Worker Empowerment Act aims to provide clarity by introducing a unified employment test under federal law.
- Paul's Association Health Plans Act proposes expanding affordable health coverage options by amending existing regulations.
- Cassidy’s Independent Retirement Fairness Act seeks to allow independent workers access to retirement plans already available under federal law.
Supporters of the legislation include Kristin Sharp of Flex Association, F. Vincent Vernuccio of the Institute for the American Worker, David French from the National Retail Federation, Patrice Onwuka from Independent Women’s Voice, Liya Palagashvili from Labor Policy Project, and Jonathan Wolfson, former policy official at the Department of Labor.
These advocates argue that current legal frameworks hinder businesses from offering essential benefits without risking changes in worker classification. They believe that this legislative package will help bridge that gap by ensuring that benefit provisions do not alter a worker's status.
This initiative is part of Senator Cassidy’s broader effort over the past year to enhance workplace benefits for independent contractors.
