Bill > S1386

This bill establishes a system for portable benefits for workers who provide services to consumers through contracting agents, which are businesses or entities that facilitate these services and pay workers who are taxed as independent contractors using Form 1099. The bill defines a "digital marketplace network" as any online platform used by a contracting agent to connect workers and consumers, and an "individual portable benefits account" as a personal account managed by a qualified benefit provider where contributions are deposited. Contracting agents that utilize a digital marketplace network and have facilitated services from at least 50 individual workers must contribute to these accounts, with contributions being at least 15% of the worker's earnings from the preceding month, and these contributions can be passed on to the consumer. Qualified benefit providers, which are nonprofit organizations with worker representation on their boards, will then use these contributions to provide workers with benefits such as workers' compensation or occupational accident insurance, health insurance, paid time off, or retirement benefits, with workers having the option to receive half of the contribution as direct compensation if they decline these benefits. The bill also outlines requirements for qualified benefit providers, including their nonprofit status, board composition, fiduciary duty to workers, and financial viability, and grants workers the ability to select and change their qualified benefit provider annually. The Department of Labor and Workforce Development will oversee the implementation of these rules, including monitoring compliance and establishing procedures for benefit selection, and workers will have the right to pursue legal action against contracting agents for failure to make required contributions. Importantly, the benefits provided under this act will not affect a worker's employment status determination.

Budget and Finance, Labor and Employment

https://www.njleg.state.nj.us/bill-search/2024/S1386