Bill to create a portable‑benefit safe harbor for independent workers earns neutral review from labor department
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Summary
HB 12‑45 would create a voluntary, market‑driven safe harbor allowing businesses to offer portable benefits to independent contractors without triggering misclassification; the Department of Labor says it is neutral and can follow the proposed exclusions, and advocacy groups supported the bill.
Lawmakers heard from proponents and state agency staff on HB 12‑45, the Voluntary Portable Benefit Act, which would create a legal safe harbor allowing companies to contribute to portable benefit accounts (retirement, health savings, flexible spending) for independent contractors without those contributions being used as evidence of employment misclassification.
Sponsor Bridal Labrie argued the measure removes a legal barrier that discourages small businesses from offering benefits to contractors and is strictly voluntary: "This legal shield is our legal shield the small business needs to stay competitive," Labrie said. The Department of Labor's legislative liaison, Cassie Abbott, told the committee the department is neutral, interpreted the bill as a limited exclusion for certain contributions when reviewing worker classification, and said the department would not act as a dispute resolution forum for private contract disputes.
National advocacy groups — the Institute for the American Worker and Americans for Prosperity — testified in favor, saying portable accounts would expand access to benefits for independent workers without imposing mandates on employers. The committee closed the hearing without a vote.
