U.S. Senator Bill Cassidy, chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, recently addressed a hearing focused on empowering independent workers with access to portable workplace benefits such as health care and retirement plans.
Senator Cassidy highlighted the significant changes in the American workforce over recent years. He noted that more than 27 million Americans are now working as independent contractors who enjoy the flexibility of setting their own schedules. However, he pointed out that current labor laws, which are nearly a century old, prevent these workers from accessing essential benefits like health insurance and retirement savings plans.
Cassidy shared anecdotes about individuals who have chosen independent work for its flexibility but remain tied to traditional employment due to the need for benefits. "A hair stylist, a musician, an artist... none of them should have to choose between a flexible work schedule and having a 401k or health coverage," Cassidy stated.
The senator introduced a legislative package alongside Senators Tim Scott and Rand Paul aimed at modernizing federal labor law. This package seeks to establish clear definitions for independent contractors while allowing them to maintain their status and gain access to benefits. The proposal includes provisions for solo 401ks and healthcare options already available under federal law.
Cassidy emphasized bipartisan support for this initiative by mentioning similar efforts in both Democratic-led states like Pennsylvania and Republican-led states such as Georgia. He called on his colleagues across party lines to collaborate in updating labor laws to provide financial security for independent workers nationwide.
"I urge all my colleagues, Republican and Democrat, to work together to achieve this goal," Cassidy concluded before yielding the floor to Senator Sanders.
