HB 987 Vote Explainer: Voluntary Portable Benefits

Quick Take

HB 987 is a very short bill designed to protect large tech companies from potential legal obligations that other employers are held to.

Why It Matters

Some "gig" workers do so by choice because they enjoy the work or the flexibility that such jobs provide, but others do it because there are no other options. Regardless, tech companies are making billions by skipping out on benefits that they may otherwise be required to provide by law.

Key Facts

HB 987:

• Alllows companies to contribute money to accounts that can help pay for insurance & retirement.
• Allows independent contractors to contribute some of their pay to these accounts.
• Explicitly states that companies who do this cannot be considered an employer.

My Perspective

The "gig" economy is relatively new and as a society we are still figuring out a lot of it. If companies want to provide accounts to help pay for insurance, retirement, and other expenses, that may be a good thing. If they are allowed to be legally excused from requirements that other large employers must provide, it gives them an unfair advantage compared to other industries. While that may make sense, or even be "fair" for the current "gig" economy, this kind of loophole opens the door for employee misclassification, potentially even in other industries.

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