WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, delivered remarks during hearing on how to empower independent workers to access portable workplace benefits, like health care and retirement.
Last week, U.S. Senators Bill Cassidy, M.D. (R-LA), chair of the HELP Committee, Tim Scott (R-SC), and Rand Paul (R-KY) unveiled a legislative package to modernize federal labor law to strengthen independent workers’ access to these benefits, and provide consistency and clarity in how an independent contractor is defined.
Click here to watch the hearing live.
Cassidy’s speech as prepared for delivery can be found below:
The Senate Committee on Health, Education, Labor, and Pensions will please come to order.
The American workforce looks much different than it did 10, even 5 years ago; let alone nearly one hundred years ago when some of our labor and employment laws were first enacted.
There are now more than 27 million Americans who work as independent contractors. They have the flexibility to make their own schedule to decide when, where, and how they want to work.
More and more I am hearing from folks back home that they want jobs that offer this type of freedom. Just one example, I took a rideshare home from the New Orleans Airport. The driver just moved to Louisiana from San Francisco, proving he’s a pretty smart fellow. Because the driver worked independently, he had the freedom to move from state to state without losing a source of income.
Another driver I talked to told me he’s a chemical engineer and he drives as a side gig. He’d rather work as a driver full time because he loves the freedom. The only reason he is still working in his current job is because he needs benefits, like health insurance and a 401k.
A hair stylist, a musician, an artist, a swamp tour guide, a rideshare driver, a software designer, an independent truck driver – none of them should have to choose between a flexible work schedule and having a 401k or health coverage. Congress must modernize labor laws to catch up to the 21st century economy and meet the needs of today’s workers.
Our nearly one hundred-year-old labor laws prevent independent contractors from receiving workplace benefits if they choose the flexibility of independent work. We’ve heard from companies that want to give benefits to their contractors, but don’t out of fear of misclassification lawsuits.
Last week, I joined Republican colleagues, Senator Paul and Senator Scott, in releasing a legislative package that modernizes federal law to give the power back to workers.
Our pro-worker package establishes a safe harbor, so that a worker can keep their independent status while unlocking benefits for themselves and their families.
It strengthens workers’ flexibility, making it clear what legally constitutes an independent contractor. The package also increases workers’ access to health care and retirement accounts, like solo 401ks, that are already available under federal law.
I appreciate Senators Paul and Scott for their leadership on this issue.
This is not a partisan issue. States with Democrat governors like Pennsylvania, Maryland, and Wisconsin, and red states like Georgia, Utah, and Tennessee are all working on pilot programs or legislation that supports portable benefits.
While these concepts are being vetted in our laboratories of democracy, outdated federal law still brings the threat of lawsuits, preventing workers nationwide from accessing benefits. It's time we establish consistency and clarity for every worker, so that those who wish to be independent contractors can not only have flexibility and independence, but financial security. I urge all my colleagues, Republican and Democrat, to work together to achieve this goal.
Thank you to our witnesses for being here. I look forward to discussing how we can empower all workers to succeed.
With that, I recognize Senator Sanders.
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