HB 494

This bill enacts the "Voluntary Portable Benefit Plan Act, which does the following:  Authorizes a public or private entity, including an internet or application-based company, to voluntarily contribute funds to a portable benefit plan as a form of compensation to an independent contractor. A ""portable benefit plan"" means a benefit plan administered by a third-party portable benefit plan provider chosen by a self-employed worker and assigned to a beneficiary rather than an employer or hiring party and includes health insurance, unemployment insurance, disability insurance, life insurance, and retirement benefits.  Authorizes contributions to a portable benefit plan to be made using the funds of a hiring party or a percentage of funds withheld from the compensation owed to an independent contractor as long as (i) withholding such compensation is expressed in a written agreement, (ii) such written agreement is clear, unambiguous, and prominently displayed either in the work contract or a separate notice, (iii) such withholdings are voluntary and require the independent contractor to opt-in, and (iv) the independent contractor may choose to opt-out of such withholdings at any time.  Prohibits contributions to a portable benefit plan from being used as a criterion for determining a worker's employment classification under certain provisions of present law governing employer/employee relations. MARKETPLACE CONTRACTORS Present law provides that in return for com pensation from the third-party or marketplace platform, marketplace contractors offer or provide services to the third-party individuals or entities upon being given an assignment or connection through the marketplace platform's online-enabled application, software, website, or system. This bill revises this provision to include compensation in the form of a contribution to a portable benefit account as described in this bill. Present law provides certain conditions that are set forth in a written agree ment between a marketplace platform and marketplace contractor that renders the marketplace contractor an independent contractor and not an employee of the marketplace platform, including the condition that the marketplace platform provides no medical or o ther insurance benefits to the marketplace contractor, and the marketplace contractor is responsible for paying taxes on all income derived as a result of services performed to third parties from the assignments or connections received from the marketplac e platform. This bill removes the condition that the market platform provides no medical or other insurance benefits to the marketplace contractor. ON MARCH 20, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1377, AS AMENDED. AMENDMENT #1 makes the following revisions:  Adds a definition for ""benefit plan"" to include h ealth insurance, i ncome replacement insurance, l ife insurance, r etirement benefits, and o ther benefits that may customarily be provided as part of a benefit plan .  Changes references from ""portable benefit plan"" to ""portable benefit account, defined as an account opened by an independent contractor to fund the purchase of one or more benefit plans and that is administered by a third-party portable benefit account provider chosen by the independent contractor and assigned to a beneficiary of one or more benefit plans rather than a hiring party .  Changes references from ""portable benefit plan provider"" to ""portable benefit account provider, defined as a bank as defined in the Federal Deposit Insurance Act, an investment management firm . or a technology provider or program manager that offers services through a bank or investment management firm.  Revises the provision that a uthorizes a public or private entity, including an internet or application-based company, to voluntarily contribute funds to a portable benefit plan as a form of compensation to an independent contractor, to, instead, authorize a n individual or entity, including a hiring party, whether public or private, an independent contractor, or an internet or application-based company, to voluntarily contribute funds to a portable benefit account for an independent contractor."