Over the past decade, 1099 workers have become a large and vastly growing part of the economy. In fact, the vast majority of new employment and job growth in the U.S. has been among independent contractors, temporary workers, freelancers, and other individuals under contingent or alternative work arrangements. A 2015 study by the U.S. Comptroller General found that from 2006 to 2010, the contingent workforce grew from 35% to 40% of all employed workers. This number is expected to reach half of the nation’s workforce in just a few short years. As the gig economy grows, this means that nearly half of the American workforce could soon be faced with an inadequate social safety net. Gig workers are often appropriately classified as independent contractors, which means they unfortunately do not have protections, such as overtime, minimum wage, unemployment insurance benefits and workers’ compensation benefits guaranteed to traditional employees under the Fair Labor Standards Act.

However, on Wednesday, May 24, Senator Mark Warner (D-VA) introduced in the Senate legislation to address this issue by promoting and experimenting with portable benefits that gig workers can take from job to job. Called the “Portable Benefits for Independent Workers Pilot Program Act,” the proposed legislation defines “portable benefits” as “work-related benefits that are provided to eligible workers for eligible work in a manner that allows the worker to maintain the benefits upon changing jobs.” The federal bill would establish a $20 million grant fund within the Department of Labor, a substantial investment to allow and incentivize cities, states, and local governments to experiment with portable benefits for independent workers.

“Whether by choice or necessity, a growing number of Americans are working without a safety net and have difficulty planning and saving for retirement, health care needs, or on-the-job injuries. The nature of work is changing rapidly, but our policies largely remain tied to a 20th century model of traditional full-time employment,” Senator Warner said in a press release.

While the fate of the bill is unknown, the Department of Labor has recently set in motion its plan to revive the Contingent Worker Supplement (CWS) to the Current Population Survey in an effort to capture a more accurate picture of the modern workforce and ascertain the need for portable benefits. We will closely follow and report on any developments.