Bill to authorize portable benefit accounts for independent contractors draws broad support and questions on worker protections

Senate Bill 336, presented to the Assembly Commerce and Labor Committee, would authorize self‑employed workers and independent contractors to open portable benefit accounts and allow clients or hiring parties to make voluntary contributions. Proponents described the accounts as a voluntary, worker‑owned mechanism to pool contributions for health coverage, retirement, paid leave and other benefits.

Senator Lori Rogich introduced the bill and said it aims to address “the growing need for accessible benefits among independent workers,” including freelancers and gig workers. Lori Rogich also identified Assemblymember Ruben DaSilva as a cosponsor.

Labor economist Leah Palagashvili (Mercatus Center) summarized national research showing growth in self‑employment and said surveys indicate strong worker demand: “81 percent of self employed workers express a strong desire to access portable benefits accounts,” she told the committee. She said similar state programs — Utah, Pennsylvania and Georgia were cited — showed no evidence that portable‑benefits pilots increased misclassification of employees.

Noah Lang, CEO and co‑founder of Stride, a benefits provider, described operational models in which companies direct a portion of additional earnings into free, worker‑owned accounts that hold funds for health insurance, emergency savings, retirement or paid time off. Lang said pilots in other states led companies such as Lyft and Shipt to offer contractor benefits and that accounts generally do not expire.

Austin Bannon of Americans for Prosperity summarized the bill’s sections for the committee. He said the bill (1) authorizes self‑employed workers to open accounts and specifies eligible uses, (2) permits administration by banks or program providers, (3) allows business clients to contribute, and (4) clarifies that contributions alone are not sufficient to determine worker classification. The sponsors said the bill’s effective date would be July 1, 2025.

Committee members raised implementation questions. Assemblymember Carter, citing construction‑industry concerns, asked how SB336 would avoid enabling misclassification that denies workers unemployment or Social Security protections. Witnesses, including Americans for Prosperity and Dr. Palagashvili, replied that Nevada already applies a strict ABC test for classification and that the bill includes an amendment preserving the Labor Commissioner’s authority to make classification determinations; they suggested misclassification enforcement and classification law are separate policy levers.

Assemblymember Torres Fassett asked whether accounts charge fees, whether funds expire and what consumer protections exist. Noah Lang said accounts as implemented in pilots have been “no cost” to workers and that the model typically relies on contributions and program administration fees paid by contributing companies; he added that banks and regulated providers would operate under existing financial regulations. Lang and other witnesses acknowledged the bill does not set explicit fee caps and that consumer protections would often flow through regulated financial institutions.

Assemblymember Kasama asked about federal tax treatment. Lang said contributions are generally treated as taxable income to the recipient under the model described, but spending on qualified items (for example, health insurance premiums) can provide tax‑preferred treatment at the spending layer. Sponsors said there is currently no statutory cap on contributions.

Supporters testifying included trade and community groups: Nevada Advanced Practice Nurses Association (NAPNA), NFIB Nevada, the Vegas Chamber, the Libre Initiative Nevada, and others representing small business and contractor interests.

Neutral testimony included the Labor Commissioner’s office during bill drafting; there was no opposition testimony recorded. The committee closed the hearing on SB336 after extensive testimony and questions; no committee floor vote on SB336 occurred during this session.