Bill > SF0041

This bill authorizes the creation and use of portable benefit accounts, which are accounts managed by a portable benefit account provider, such as a financial institution or investment firm, that an independent contractor can open to fund various benefits like health insurance, retirement, or life insurance. A "hiring party," which is someone who hires an independent contractor, or the independent contractor themselves, can voluntarily contribute to these accounts. Importantly, contributions to these accounts cannot be used to determine if someone is an employee or an independent contractor, and any withholding of funds from an independent contractor's compensation to contribute to such an account must be explicitly agreed upon in writing, with the independent contractor having the right to opt in or out at any time, and the hiring party also having the ability to opt out with advance notice. The Department of Workforce Services is required to create rules to implement these provisions, with most of the bill taking effect immediately upon becoming law, and Section 1, which establishes the portable benefit accounts, becoming effective on July 1, 2026.