Tennessee
On April 3, Tennessee Gov. Bill Lee signed into law the bipartisan “Voluntary Portable Benefit Plan Act,” which allows public and private entities to voluntarily contribute to portable benefit plans for independent contractors.
The legislation authorizes marketplace platforms to provide medical and other insurance benefits to gig workers and 1099 independent contractors.
“Years ago, Tennessee led the nation to set up a gig economy,” Americans for Prosperity-Tennessee State Director Tori Venable said in a statement. “And now, self-employed Tennesseans and independent contractors can have access to free market solutions that will improve healthcare transparency and access. Nashville is a health care innovation hub filled with entertainers pursuing their American Dream in Music City. Flexible benefit accounts will be part of that dream and the Volunteer Way.”
Source: Legislators push for portable benefits | Staffing Industry Analysts
The new Tennessee law that’s a game changer for gig workers
Thanks to the leadership of Tennessee Sen. Bo Watson (R-Hixson) and Rep. Charlie Baum (R-Murfreesboro), with bipartisan support, the Tennessee legislature recently passed the Voluntary Portable Benefit Plan Act into law. This legislation will enable companies to offer benefits to the growing independent workforce, and those benefits will be tied to the worker rather than the company.
Under this law, the benefits that businesses may offer to contractors will usually be in the form of cash payments placed in individual accounts maintained by third-party administrators. The funds may be used to purchase their choice of benefits, which may include paid leave, retirement, healthcare or any other benefit ordinarily offered to full-time employees. For example, a rideshare company may deposit funds into a portable benefit account that the driver can use to pay a health insurance premium.
Tennessee’s innovative new legislation creates a voluntary framework for benefits, rather than a mandate. It unleashes the power of the free market to give businesses the opportunity to provide portable benefits to their independent contractors.
This law is already in effect in Utah, making Tennessee the second state to give independent workers access to critical benefits without jeopardizing their workplace flexibility.
Source: Gig workers in Tennessee finally get benefits they deserve | Opinion
