High Country Times

WASHINGTON – Today, Workforce Protections Subcommittee Chairman Kevin Kiley (R-CA) addressed the issue of connecting independent contractors to portable benefits during a hearing titled "Unlocking Opportunity: Allowing Independent Contractors to Access Benefits."

Chairman Kiley highlighted the importance of benefits in the modern economy by posing the question, "How can we ensure that American workers remain secure and prosperous in the modern economy?" He emphasized the significance of benefits, citing a statistic from the Society of Human Resource Management that states, "60 percent of employees find benefits 'extremely' or 'very' important when considering future jobs."

Referring to the preferences of independent contractors, Chairman Kiley mentioned a 2020 survey of rideshare drivers, stating that "67 percent of drivers prefer to get benefits with their independent contractor status intact instead of receiving benefits through traditional employment."

With estimates indicating that a significant number of American workers rely on independent forms of work, Chairman Kiley expressed concern about the lack of benefit coverage for many individuals and families. He presented two options for the future workforce: accepting reduced access to benefits or transitioning to a model where benefits are attached to the worker, not the employer, firmly supporting the latter approach.

Advocating for flexible and customizable benefits that suit different types of work, Chairman Kiley proposed portable benefits as the solution to bridge the gap between traditional employment and the modern workforce. He noted that this transition is already underway, with several states exploring or implementing portable benefit programs.

Highlighting the potential impact in California, Chairman Kiley pointed out that over 200,000 Uber drivers in the state could benefit from such a program, along with numerous other independent workers. While acknowledging the historical lack of support for independent workers from California and the Department of Labor, he expressed optimism about the evolving policy landscape in favor of portable benefits for all workers.