Dear Members of the Senate Finance Committee,

We, the undersigned organizations, write to express our support for your consideration and passage of SB1276, a bill on portable benefits accounts.

According to the Census Bureau, there are almost 600,000 independent workers in Virginia, who generated 19.7 million dollars in revenues in 2022 alone. Nationwide, workers who are contractors as their main job represent about 10 percent of the U.S. workforce.  Unlike W2 employees who often receive benefits like employer-sponsored health insurance coverage, retirement savings plans with matching employer contributions, and many other fringe benefits, independent contractors must find coverage for these benefits on their own – often at a premium. 

However, through portable benefits legislation, Virginia has a unique opportunity to close this coverage gap by removing state barriers preventing independent contractors, freelancers, and other unbenefited workers from accessing the baseline benefits that would make such work a sustainable professional choice. Portable and flexible benefits are an innovative policy approach that bridges the gap between independent workers and fringe benefits to support workforce flexibility in today’s evolving economy. 

Already, there has been a groundswell of success seen in Utah and Pennsylvania, where gig economy companies have launched pilot programs to offer workers portable benefits. The results, though preliminary, look promising. 

Many workers value the flexibility of independent work over traditional employment but are often forced to sacrifice access to benefits. SB1276 addresses this challenge for Virginia’s self-employed workforce, enabling those they work with to provide more competitive forms of compensation.

Thank you for your consideration. We welcome the opportunity to serve as a resource for any members who wish to learn more about how this legislation benefits the citizens of the Commonwealth.

Sincerely,

Cicero Institute

Independent Women’s Voice

Institute for the American Worker

Libertas Institute

Virginia Institute for Public Policy