Bill > SB1377

This bill establishes the "Voluntary Portable Benefit Act" in Tennessee, which creates a framework for independent contractors to establish portable benefit accounts that can be funded by hiring parties. The bill defines key terms such as "independent contractor" and "portable benefit account," and allows businesses and individuals to voluntarily contribute funds to these accounts, which can cover benefits like health insurance, income replacement, life insurance, and retirement benefits. Importantly, contributions to these accounts cannot be used to determine a worker's employment classification, and any withholdings from an independent contractor's compensation must be voluntary, clearly stated in a written agreement, and allow the worker to opt-in or opt-out at any time. The legislation also makes minor amendments to existing Tennessee code to clarify language around marketplace platforms and independent contractors, specifically addressing how contributions to portable benefit accounts might be considered in worker classification. The bill aims to provide more flexibility and benefits for independent contractors while maintaining their independent status, and it takes effect immediately upon becoming law.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1377&ga=114