Bringing Portable Benefits to Florida’s Independent Workforce: Overview

In today’s economy, over three million Florida residents are freelancers, contractors, or self-employed workers. They include rideshare and delivery drivers, truckers, freelance creatives, real estate agents, hairstylists, childcare providers, professional consultants, and countless others.[1] US Census Bureau data shows that this is a growing workforce, one that generates more than $170 billion annually in revenue or sales for the state (figure 1).[2] 

Yet, these workers operate outside traditional employment relationships and often lack access to job-based benefits such as health insurance, retirement plans, and paid leave. This is not necessarily because companies do not want to offer benefits, but because outdated laws, written nearly a century ago, prohibit providing benefits to non-employees without risking legal consequences. Offering benefits to an independent worker can trigger legal reclassification of the worker as an “employee” under Florida law.

Many self-employed workers could gain access to benefits if companies were legally permitted to contribute to portable benefit plans on their behalf.

What Are Portable Benefits?

Portable benefits are a solution designed for today’s flexible workforce. Tied to the individual worker—not a job or employer—portable benefits allow independent workers to receive contributions from multiple companies into a single worker-owned account managed by a bank or third-party platform. These accounts can support health insurance premiums, paid time off, retirement savings, and more.

Many self-employed workers could gain access to benefits if companies were legally permitted to contribute to portable benefit accounts on their behalf.

Momentum Across the States

Several states are leading the way:

• Pennsylvania, Georgia, and Maryland: Supported a pilot program launched by DoorDash and managed by Stride, with backing from the governors
• Utah: Passed the first voluntary portable benefits law in 2023; Target and Lyft launched a pilot program
• Alabama and Tennessee: Enacted laws in April 2025 similar to Utah’s 2023 portable benefits law, removing legal barriers for companies to offer benefits to independent workers

The Worker’s Case for Portable Benefits 

• Preference for independent work: According to the Bureau of Labor Statistics, 80.3 percent of independent workers prefer to stay independent; only 8.2 percent prefer W-2 work.[3]
• Support for benefits: 80.1 percent of self-employed workers want access to portable benefits[4]
• Desire for balance: Workers want security without sacrificing flexibility and independence

The Business Case for Portable Benefits 

• Workforce stability: Helps attract and retain a more reliable and engaged independent workforce
• Legal clarity: Enables companies to offer benefits without fearing legal backlash
• Operational flexibility: The voluntary, opt-in model avoids mandates for resource-constrained businesses, while empowering better-resourced companies to support their independent workers

Policy Recommendation for Florida 

Florida can join the national movement by allowing workers to create portable benefits accounts and companies to contribute to portable benefits funds without triggering worker reclassification rules. In doing so, Florida can support a modern, inclusive economy that aligns with how people actually work today—empowering businesses to innovate and enabling workers to thrive.

Additional Resources

Substack Newsletter: Liya Palagashvili, "The Portable Benefits Revolution: How Did We Get Here," Labor Market Matters, May 1, 2025.

Policy Brief: Liya Palagashvili, "Flexible Benefits for a Flexible Workforce: Unleashing Portable Benefits Solutions for Independent Workers and the Gig Economy" (Mercatus Policy Brief, Mercatus Center at George Mason University, February 3, 2023).

Policy Brief: Liya Palagashvili, "Flexible and Portable Benefits for Independent Workers: Federal Policy Guide" (Mercatus Policy Brief, Mercatus Center at George Mason University, October 2024).

Policy Brief: Liya Palagashvili, "Flexible and Portable Benefits for Independent Workers: State Policy Guide" (Mercatus Policy Brief, Mercatus Center at George Mason University, October 2023).

Research Paper: Liya Palagashvili, "Understanding Nontraditional Work Arrangements and the Policy Landscape for Self-Employed Workers and the Gig Economy," (American Enterprise Institute, 2023).

Research Paper: Liya Palagashvili, Paola Suarez, Christopher M. Kaiser, and Vitor Melo, "Assessing the Impact of Worker Reclassification: Employment Outcomes Post–California AB5," (Mercatus Working Paper, Mercatus Center at George Mason University, January 31, 2024).

Notes