Unlocking Benefits for Independent Workers Act

The Unlocking Benefits for Independent Workers Act would change how employment status is determined for federal purposes. It provides that, when figuring out whether someone is an employee under any federal law, portable benefits a person receives should not be counted or weighed in the decision. In other words, benefits that can be carried across jobs or that resemble typical full-time employee benefits should not cause a worker to be treated as an employee of a particular employer simply because they receive those benefits. The bill aims to support independent workers (such as freelancers and gig workers) by reducing the risk that portable benefits could trigger employee classifications, thereby promoting the use of portable-benefits programs. The bill uses the term “portable benefits” to cover several categories: benefits the worker can maintain regardless of ongoing work for a specific employer; benefits commonly provided to full-time employees; contributions to such benefits made by the employer or by the worker; and combinations of these elements. It applies to determinations under all federal laws, not just a single statute.