By Liz Carey
Washington, DC (WorkersCompensation.com) - Sen. Mark Warner (D-Virginia) introduced legislation in Congress Thursday that would create a portable benefits plan for workers in the gig economy.
Called the “Portable Benefits for Independent Workers Pilot Program Act,” the bill would establish a $20 million fund in the U.S. Dept. of Labor to help states, localities and nonprofit organizations establish and experiment with portable benefits for independent workers.
According to a 2015 study by the US Comptroller General, 40 percent of the employed workers in 2010 were considered contingent workers, or those working on a freelance, independent contractor, consultant or other outsourced and non-permanent basis.
In an interview with Rachel Cohen, Warner’s press secretary, all questions were referred to a press release about the bill. In the press release, Warner said he anticipated that number would rise to 50 percent by 2020.
“Whether by choice or necessity, a growing number of Americans are working without a safety net and have difficulty planning and saving for retirement, health care needs, or on-the-job injuries,” Warner said. “The nature of work is changing rapidly, but our policies largely remain tied to a 20th century model of traditional full-time employment. …These incentive grants will accelerate experimentation at the state and local levels to better support a more independent 21st century workforce.”
A partner bill, sponsored by Rep. Suzan DelBene, (D-Washington), was introduced Thursday in the House.
Leacy Burke, communications director for Rep. Joe Wilson’s office, did not immediately return requests for comment.
The bill joins several other initiatives to address a growing number of employees working in the gig economy.
As previously reported on WorkersCompensation.com, in May, ride-sharing company Uber began a pilot program in eight states that would provide its drivers with personal injury insurance to cover any injuries drivers received on the job.
Available in Illinois, Massachusetts, South Carolina, West Virginia, Arizona, Oklahoma, Pennsylvania and Delaware, the program would increase the charge to customers by five cents per mile to cover the cost for the insurance. Drivers would then purchase the insurance from Uber for 3.75 cents per mile.
The policies will pay out up to $1 million for medical expenses, up to half of a driver's average weekly earnings, and a maximum of $150,000 in survivor benefits.
And at Care.com, a company that matches caregivers with families, an experimental program would give its workers $500 per year to cover expenses for healthcare and transportation.
States are also looking at providing more benefits to non-traditional workers. In Washington state, New York and Illinois, legislators have either introduced bills assisting non-traditional employees or have decided to look further into the issue.
Representatives from Lyft, Postmates and the Freelancers Union supported the move.
"We are grateful for Senator Warner’s leadership in addressing the issue of portable benefits for all independent workers. The growing desire for flexibility among many workers has created a need to consider new approaches. A pilot program that encompasses all independent workers is a wise way to explore the development of a portable benefits program nationally, a concept Lyft supports,” said Lyft Vice President of Government Relations Joe Okpaku in a press release.
---
UPDATE (5/26/17):
Brett Messenger, global head of community for Fiverr, a job sharing site primarily for creative services, said his company is in favor of the legislation.
“Fiverr’s community is filled with small businesses, entrepreneurs and freelancers tapping into the economic engine that is independent work,” Kastner said. “While this portion of the economy continues to grow both online and off, our outdated system has left many in a tough spot. Senator Warner's legislation is a good first step in addressing this increasingly important problem, and we’re looking forward to working with him and other legislators at the state and federal levels to cooperatively create a system that helps small businesses and independent workers thrive.”
But Tim Bell, with the Chicago Workers' Collaborative, said the bill did not go far enough. Temporary workers, which the bill also covers, don’t want benefits with flexible schedules, he said, they want full-time jobs with flexible benefits.
“Temporary workers aren’t temporary workers because they want that flexibility in their job,” he said. “Most temporary workers that I know want permanent full-time employment. They want to be able to have health insurance and vacation days and sick days and workers’ compensation. They don’t want to be in a temporary job for ten years, working without benefits, and that’s exactly what the temporary worker economy has become. It’s not a solution to the problem of employers hiring temporary workers to avoid paying for benefits.”
