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Portable Benefits Policy Hub

Where portable benefits policies are advancing and how they work

Portable benefits policies are gaining momentum across states and at the federal level. Explore where reforms are happening, how they work, and the research behind them.

A Policy Movement Across States—and Beyond

Portable benefits are no longer theoretical; they are being tested and implemented across the country. In just the past few years, states have enacted legislation, launched pilot programs, and introduced new proposals to expand benefits access for independent workers.

What began as a single-state effort is now a rapidly expanding national policy movement. Recent federal bills (S.2210 - Unlocking Benefits for Independent Workers Act and H.R.1320 - Modern Worker Security Act) reflect growing interest in creating a national safe harbor framework, building on the momentum emerging from the states. 

 

How Portable Benefits Work

The American benefits system was built around workers having a single employer—but today’s workforce no longer works that way. Tens of millions of Americans are independent workers who lack access to benefits like health insurance, retirement savings, and paid leave. 

Portable benefits are designed to fit the realities of modern work. Instead of tying benefits to a single employer, they allow workers to build benefits across multiple income sources using independent, worker-owned accounts. 

The policy change creates a legal safe harbor so that companies or clients can contribute to benefits for independent workers without those contributions being treated as evidence of employment status. This approach closes the gap between a changing workforce and an outdated benefits system.

 

Growth of Independent Work

Independent work has grown steadily over the past several decades, reflecting a broader shift in how Americans earn income. This trend helps explain why policymakers across the country are exploring portable benefits solutions.

Policy Spotlight

Bringing Portable Benefits to America’s Independent Workforce: Overview

By Liya Palagashvili

Modernizing benefit laws could empower about 30 million American workers

What Workers Are Saying

Portable benefits are not just a policy idea—they directly impact workers’ lives. More than 80 percent of independent workers prefer to remain independent, and fewer than 8 percent say they want a traditional W-2 job. Yet more than 80 percent also say they want access to benefits. 

These stories reflect a consistent theme: Workers don’t want, and shouldn’t need, to choose between independence and security. 

Quotation Marks
So I would still be an independent contractor with the option of getting benefits? That would be a life-changer for me.
Quotation Marks
I’ve used it to create long-term savings … and for paid time off.
Feature

Empowering American Workers

By Liya Palagashvili

Mercatus scholars are helping to deliver policy outcomes that improve people’s lives. Liya Palagashvili’s research focuses on empowering independent workers through portable benefits—benefits that aren’t tied to a specific employer but travel with the worker. Liya believes this issue will be central to the 21st-century American workforce: “The portable benefits revolution has arrived!” She has driven a niche policy idea to the top of the congressional agenda; the story below shows the difference this idea is making in the lives of everyday Americans. 

Research & Resources

    Policy Brief

    Flexible and Portable Benefits for Independent Workers: Federal Policy Guide

    By Liya Palagashvili and Jonathan Wolfson

    Seven federal reforms that will increase access to benefits for nontraditional workers—benefits that are not tied to one job or employer but travel with the worker.

    Policy Brief

    Flexible and Portable Benefits for Independent Workers: State Policy Guide

    By Liya Palagashvili and Jonathan Wolfson

    Seven state reforms that will increase access to benefits for nontraditional workers—benefits that are not tied to the job or the employer but travel with the worker.

    Policy Brief

    Flexible Benefits for a Flexible Workforce: Unleashing Portable Benefits Solutions for Independent Workers and the Gig Economy

    By Liya Palagashvili

    Flexible forms of work are beneficial and are desirable opportunities for a large set of working Americans. 

    Expert Commentary

    Could Congress Finally Deliver Benefits for All Workers? | National Review

    By Liya Palagashvili

    Independent workers deserve some security without being forced into a one-size-fits-all mold.

    Expert Commentary

    Here’s one way America’s many ‘pro-worker’ candidates can deliver | The Hill

    By Liya Palagashvili and Jonathan Wolfson

    Portable benefits can give independent workers more flexibility and security without forcing reclassification.

    Expert Commentary

    How portable benefits can drive US innovation and job growth | The Hill

    By Liya Palagashvili

    Portable benefits give entrepreneurs a safety net, spurring business creation and technological progress.

    Federal Testimony

    Modernizing Labor Policy to Support Independent Work and Portable Benefits

    By Liya Palagashvili

    More financial security without dismantling preferred jobs.

    State Testimony

    Nevada’s Portable Benefits Bill: Legalizing Access to Benefits for Self-Employed Workers

    By Liya Palagashvili

    The Assembly is reviewing SB 336, a bill that establishes provisions relating to portable benefit accounts.

    Federal Testimony

    Flexible Benefits for a Flexible Workforce: Legalizing Access to Portable Benefits for Independent Workers

    By Liya Palagashvili

    Subcommittee on Workforce Protections, Unlocking Opportunity: Allowing Independent Contractors to Access Benefits

    State Testimony

    App-Based Workers Want to Keep Their Gigs—and Gain Flexible Benefits

    By Liya Palagashvili

    Commonwealth of Massachusetts, Special Joint Committee on Initiative Petitions | App-Based Drivers/Transportation Network Carriers.

    Frequently Asked Questions

    New to portable benefits? These FAQs address some common concerns and misconceptions. 

      No. They do not alter existing classification tests. They simply clarify to courts and agencies that offering benefits cannot be used as evidence of employee status. 

       No. Proposals based on the Mercatus voluntary portable benefits safe harbor framework clarify only that companies or clients can voluntarily contribute if they choose.

      The majority of independent workers aren’t looking to be reclassified as employees; they simply want access to benefits without giving up their autonomy. What they value is not just income, but the flexibility to decide where to work, how much to work, and when to work.

      Yes. Pilot programs and state frameworks show strong employer participation once legal clarity exists. For example, in Pennsylvania, workers in the DoorDash pilot program received more than $1.3 million in benefits. Nearly 75 percent of workers who previously lacked access to benefits gained access through a portable benefits program. 

      Get in Touch

      Media and Government Relations
      Contact Us

      Mercatus scholars regularly brief staff at the federal, state, and local levels. To schedule a meeting, please email Duncan Schroeder

      If you'd like to connect with a scholar for a news story, please email our media team at [email protected] or call (703) 993-4881.