Senators Scott, Cassidy, Paul Release Legislative Package Empowering Independent Workers to Access Portable Benefits

WASHINGTON — U.S. Senators Tim Scott (R-S.C.), Bill Cassidy M.D. (R-La.), chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, and Rand Paul (R-Ky.) unveiled a legislative package modernizing federal labor law to empower 27 million independent workers to access portable workplace benefits, like health care and retirement. The package will also provide consistency and clarity in how an independent contractor is defined, making it easier for workers to find jobs that allow for flexibility and independence. 

“Empowering our workers with modern tools and flexible opportunities is essential for strengthening our economy and ensuring they can succeed in today’s dynamic job market. The Modern Worker Empowerment Act reflects our commitment to innovation, flexibility, and growth for all Americans,” said Senator Scott. 

“Outdated labor laws should not prevent workers from receiving health care or saving for a secure retirement,” said Dr. Cassidy. “Modernizing our federal labor laws ensures all independent workers can access workplace benefits without losing their flexibility to work how and when they want.” 

“The Association Health Plans Act gives small businesses and individuals the leverage to negotiate collectively for lower health insurance and lower drug prices. Additionally, the CBO previously estimated that 400,000 uninsured would gain coverage under AHPs and over 3 million people would switch coverage to AHPs,” said Dr. Paul.

The vast majority of independent workers prefer alternative work arrangements to traditional [“9 to 5”] employment, and 80 percent of these workers would like access to workplace benefits. Yet decades-old federal labor and employment laws, including the Fair Labor Standards Act of 1938 and the National Labor Relations Act of 1935, prevent independent workers from accessing common workplace benefits. 

The legislative package includes:  

• Cassidy’s Unlocking Benefits for Independent Workers Act: Establishes a safe harbor under federal law for companies that would like to voluntarily provide benefits.
  • Applies to any benefit or protection commonly provided to full-time employees, such as retirement and health care benefits. It also applies to emerging models where firms may pay into portable accounts, or any combination of those arrangements. 
• Scott’s Modern Worker Empowerment Act: Gives workers clarity and consistency by instituting a single employment test under federal law.  

• Paul’s Association Health Plans Act: Increases affordable health coverage options to millions of self-employed Americans and employees of small businesses by amending the Employee Retirement Income Security Act of 1974 (ERISA) to give small business employees, sole proprietors, and gig workers the ability to aggregate together and access health insurance through Association Health Plans (AHPs). 
• Cassidy’s Independent Retirement Fairness Act: Empowers independent workers to participate in retirement plans, like pooled employer plans and single employee pension IRAs, that are already available under federal law. (Note: legislative text will be available shortly on the HELP Committee website)

###