Posts tagged sole proprietors
Portable Benefits Win in Six More States
June 24, 2026 // A company willing to contribute toward benefits risks having the independent contractor reclassified as a traditional W2 employee, which brings new tax obligations, wage rules, and liability. Faced with that risk, most companies contribute nothing. Independent contractors are left to pay for benefits on their own, and many go without, with no safety net if they get sick, lose work, or grow old without savings. Portable benefits laws cut that knot. They establish that a voluntary contribution to a worker’s benefit account does not make the worker an employee. The account under this framework belongs to the worker, rather than the company, and follows them from one contract to the next. Contributions can fund health coverage, retirement savings, paid leave, disability protection, and emergency income, the protections a traditional job provides.
100 State Leaders Urge Washington to Protect Independent Work
May 8, 2026 // That is why State Policy Network’s Center for Practical Federalism helped organize a coalition of 100 state leaders from 25 states in support of the US Department of Labor’s proposed rule clarifying independent contractor status under federal law. The coalition includes four statewide officials and 96 state legislators. The proposed rule would rescind the Biden administration’s 2024 independent contractor rule and replace it with a clearer standard for determining when a worker is an employee and when a worker may be classified as an independent contractor under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act.
Legislation helping independent workers access portable benefits introduced
July 10, 2025 // Currently, while 80 percent of independent workers would like access to workplace benefits, decades old federal labor and employment law prevent them from doing so. The legislative package is supported by independent worker organizations like Flex Association, the Institute for the American Worker and the National Retail Federation, to name a few. “The Unlocking Benefits for Independent Workers Act is an important step toward addressing some of the federal legal hurdles that complicate efforts to connect independent contractors with portable benefits while ensuring that the millions of Americans who choose to earn on their own terms can continue doing so without risking the independence and flexibility they value. Flex looks forward to working with Senator Cassidy and other forward-thinking policymakers as there is additional work to be done on this issue at the state and federal levels,” Kristin Sharp, CEO of Flex Association.