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Committee passes portable-benefits bill but later passes motion to kill it; concerns about worker classification prevail

2152896 · January 23, 2025
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Summary

HB 2,443, creating a framework to allow independent contractors to receive portable benefit accounts, drew broad support from advocacy groups and vendors but the committee ultimately passed a motion to pass the bill by indefinite to study further; the motion passed 4–3.

Delegate Scott introduced HB 2,443 to allow independent contractors to have a portable benefits account that follows them between contracts, enabling contributions to health, retirement and other benefits by contracting parties or the worker. Sponsor framing was that the bill removes a regulatory barrier enabling portable benefits programs already piloted in other states.

Supporters included technology platforms (Stride Health), advocacy groups (Independent Women's Forum; Libertas Institute), worker advocates, and experts who cited pilots in Utah, Pennsylvania and other states. Panelists described private pilots (e.g., Lyft matching contributions, DoorDash pilots) and argued the bill preserves independent-contractor status while expanding benefit access.

Opponents were limited in number at the hearing, but Delegate Helmer spoke in opposition on policy grounds, urging indefinite pass because she said the bill could encourage aggregator models and weaken employee protections tied to W-2 status. Helmer moved to pass the bill by indefinite; the motion was seconded and the panel voted 4–3 to pass by indefinite.

Why it matters: The measure would have allowed companies and platforms to contribute to portable accounts for independent contractors without triggering reclassification as employees. Lawmakers debated tradeoffs between benefit access and maintaining worker classification rules designed to protect employees.

Outcome: Committee voted 4–3 to pass HB 2,443 by indefinite (effectively killing it for the session) after extended testimony and a substitute motion discussion.