Senator introduces bill aimed at boosting retirement benefits for gig workers

The vast majority of independent workers prefer alternative work arrangements to traditional employment, and 80% of these workers would like access to workplace benefits, according to a HELP statement. Yet decades-old federal labor and employment laws, including the Fair Labor Standards Act of 1938 and the National Labor Relations Act of 1935, prevent independent workers from accessing common workplace benefits.   

The Independent Retirement Fairness Act is part of Cassidy’s year-long legislative effort to strengthen workplace benefits for independent workers. The new bill, which was introduced along with Senators Tim Scott (R-SC), and Rand Paul (R-KY), empowers independent workers to participate in retirement plans, like pooled employer plans and single employee pension IRAs, that are already available under federal law, said Sen. Cassidy. 

Last year, the American Benefits Council (ABC) responded to Sen. Cassidy’s request for information with a 5-point plan to “enhance gig worker retirement security,” read ABC’s letter.

The plan included reference to each gig worker as a “sole proprietor,” and, as such, “can establish and participate in her own 401(k) plan, SIMPLE IRA or Simplified Pension …” said the letter. “The challenge is how to help gig workers access available tools because the reality is that it is not always easy for an individual on her own to adopt a retirement plan.”

Key provisions of the Independent Retirement Fairness Act include PEP access for gig workers, simplified employee pension reforms, streamlined auditing (to reduce administrative burdens) and pilot programs to be launched that are designed to encourage gig workers to save small amounts of their income.