U.S. Senator Bill Cassidy has announced the introduction of the Unlocking Benefits for Independent Workers Act, as reported by WECT News 6. The legislation aims to create a legal safe harbor for companies that voluntarily offer portable benefits to gig workers.
According to a press release from the Senate Health, Education, Labor and Pensions (HELP) Committee, Cassidy introduced the bill alongside Senators Tim Scott and Rand Paul as part of a broader legislative effort to modernize federal labor law. The bill seeks to empower approximately 27 million independent contractors—such as rideshare drivers, freelancers, and gig workers—who currently lack access to basic employment benefits like health coverage and retirement plans. This legislation is part of a coordinated package that includes other bills like the Modern Worker Empowerment Act and the Independent Retirement Fairness Act, aiming to expand benefit access while preserving worker flexibility and contractor status.
The proposed Act establishes a safe harbor under federal law allowing companies to voluntarily provide portable benefits without risking misclassification lawsuits. It explicitly states that providing benefits cannot be used to determine employment status. A white paper released by Cassidy affirms that companies could extend benefits such as health care or retirement plans without triggering liabilities tied to hiring employees—like unemployment insurance, workers’ compensation, or overtime pay requirements. This feature is designed to alleviate fears among platforms that offering benefits will automatically reclassify gig workers as employees.
Cassidy’s proposals include expanding independent workers’ access to retirement tools such as Pooled Employer Plans (PEPs) and Single-Employee Pension IRAs (SEP IRAs), enabling contractors to save for retirement without forfeiting their contractor classification. The legislative framework also encourages expanding healthcare access through association health plans and health reimbursement arrangements, allowing gig workers to obtain affordable coverage via nonprofits or trade associations. Additionally, the proposals address income volatility through mechanisms like suspension or escrow accounts, which would help gig workers manage irregular earnings and direct funds toward benefits or savings when needed.
WECT is a television station based in Wilmington, North Carolina, serving the southeastern region of the state with news, weather, and community programming. According to its official website, WECT is an NBC affiliate that has been broadcasting since 1954 and currently operates under Gray Television.
