To ensure that the provision of portable benefits to an individual is not considered in determining whether such individual is an employee of a person.
This bill would change how the federal government determines whether an individual is an employee of a person. Specifically, it directs agencies to ignore whether an individual receives portable benefits when assessing employee status under any federal law. It also defines what counts as a portable benefit and what counts as a work-related benefit, including how such benefits can be funded (by the employer, the worker, or both). The overall aim is to decouple the existence of portable benefits from the legal classification of a worker as an employee rather than an independent contractor. In practical terms, if enacted, portable benefits would not be treated as evidence that someone is an employee for purposes of federal labor, employment, or related laws. The bill broadens the concept of portable benefits and codifies that these benefits can be maintained independent of ongoing work for a specific employer.