II 

116TH CONGRESS 

1ST SESSION S. 541 

To require the Secretary of Labor to establish a pilot program for providing 

portable benefits to eligible workers, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 25, 2019 

Mr. WARNER (for himself, Mr. YOUNG, Mr. HOEVEN, Mr. SASSE, Mr. BENNET, and Mr. KING) introduced the following bill; which was read twice 

and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To require the Secretary of Labor to establish a pilot program for providing portable benefits to eligible workers, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Portable Benefits for 

5 Independent Workers Pilot Program Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Many independent workers, constituting a 

9 growing percentage of the workforce in the United 


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1 States, do not have access to benefits and protec2 tions typically provided through traditional full-time 

3 employment. 

4 (2) These independent workers are independent 

5 contractors, temporary workers, self-employed, or 

6 work pursuant to other contingent or alternative 

7 work arrangements. 

8 (3) According to a 2015 study by the Comp9 troller General of the United States, the size of the 

10 contingent workforce grew from 35 percent of em11 ployed workers in 2006 to 40 percent of employed 

12 workers in 2010. 

13 (4) According to a 2016 study by economists 

14 Lawrence Katz and Alan Krueger, 94 percent of net 

15 employment growth in the United States economy 

16 from 2005 to 2015 occurred in alternative work ar17 rangements. 

18 (5) As the population of independent workers 

19 grows, it is increasingly important that workers are 

20 provided portable benefits. 

21 SEC. 3. DEFINITIONS. 

22 In this Act: 

23 (1) ELIGIBLE ORGANIZATION.—The term ‘‘eligi24 ble organization’’ means any State or local govern25 ment or any nonprofit organization. 


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1 (2) ELIGIBLE WORK.—The term ‘‘eligible work’’ 

2 means any work performed that is not in connection 

3 with traditional full-time employment. 

4 (3) ELIGIBLE WORKER.—The term ‘‘eligible 

5 worker’’ means any worker who is not a traditional 

6 full-time employee of the entity hiring the worker for 

7 the eligible work, including any independent con8 tractor, contract worker, self-employed individual, 

9 freelance worker, temporary worker, or contingent 

10 worker. 

11 (4) PORTABLE BENEFITS.—The term ‘‘portable 

12 benefits’’— 

13 (A) means work-related benefits that are 

14 provided to eligible workers for eligible work in 

15 a manner that allows the worker to maintain 

16 the benefits upon changing jobs; and 

17 (B) includes— 

18 (i) contributions on behalf of the eligi19 ble worker made by an entity (including 

20 multiple entities, if applicable) in connec21 tion with eligible work performed by the 

22 worker for the entity, including entities 

23 that facilitate the sale of such work; 

24 (ii) contributions made by the eligible 

25 worker; or 


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1 (iii) a combination of the contribu2 tions described in clauses (i) and (ii). 

3 (5) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Labor. 

5 (6) WORK-RELATED BENEFITS.—The term 

6 ‘‘work-related benefits’’ means benefits, including 

7 protections, of a type that are commonly provided to 

8 traditional full-time employees, such as workers’ 

9 compensation, skills training, disability coverage, 

10 health insurance coverage, retirement saving, income 

11 security, and short-term saving. 

12 SEC. 4. ESTABLISHMENT OF PORTABLE BENEFITS PILOT 

13 PROGRAM. 

14 (a) IN GENERAL.—The Secretary, in consultation 

15 with the head of any other relevant Federal agency, shall 

16 award grants for fiscal year 2020, on a competitive basis, 

17 to eligible organizations to support broad innovation and 

18 experimentation with respect to portable benefits. 

19 (b) USES OF FUNDS.— 

20 (1) TYPES OF GRANTS.—The grants awarded 

21 under subsection (a) shall be grants for— 

22 (A) the evaluation, or improvement to the 

23 design or implementation, of existing models or 

24 approaches for providing portable benefits; or 


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1 (B) the design, implementation, and eval2 uation of new models or approaches for pro3 viding such benefits. 

4 (2) REQUIREMENT REGARDING RETIREMENT5 RELATED BENEFITS.—An eligible organization that 

6 receives a grant under subsection (a) may not use 

7 the grant to fund a model or approach described in 

8 paragraph (1) that provides only retirement-related 

9 benefits. 

10 (c) POTENTIAL FOR NATIONAL APPLICABILITY.—In 

11 awarding grants under subsection (a), the Secretary shall 

12 consider the potential of the model or approach described 

13 in subsection (b)(1) to be replicated on a large scale or 

14 at the national level. 

15 (d) APPLICATIONS.—Each eligible organization that 

16 desires to receive a grant under subsection (a) shall sub17 mit an application to the Secretary, at such time, in such 

18 manner, and accompanied by such information as the Sec19 retary may require. 

20 SEC. 5. REPORT TO CONGRESS. 

21 Not later than September 30, 2022, the Comptroller 

22 General of the United States shall evaluate the outcome 

23 of the grants awarded under section 4(a) and provide a 

24 report on such evaluation to Congress. Such report shall 

25 include an assessment of the impact of such grants on the 


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1 compensation of workers receiving portable benefits under 

2 section 4. 

3 SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 

4 (a) IN GENERAL.—There is authorized to be appro5 priated for fiscal year 2020— 

6 (1) $5,000,000 to carry out the grants de7 scribed in section 4(b)(1)(A); and 

8 (2) $15,000,000 to carry out the grants de9 scribed in section 4(b)(1)(B). 

10 (b) AVAILABILITY.—Amounts appropriated under 

11 subsection (a) shall remain available until expended. 

Æ 


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