|
Getting your Trinity Audio player ready...
|
As Alabama’s economy evolves with technological advancements and shifting employment trends, the Legislature is taking important steps to support the growing number of independent workers in our state.
This session, the Alabama Legislature passed a forward-thinking bill that provides much-needed support to self-employed individuals and independent contractors.
From Uber and Lyft drivers to DoorDash delivery workers, entertainers, and freelance professionals, Alabama has more than 79,000 independent contractors. Whether it’s parents working around school schedules, college students picking up jobs between classes, or retirees earning supplemental income, these opportunities meet people where they are in life.
But that flexibility often comes at a cost: a lack of access to benefits like health insurance and retirement plans.
Our legislation is a pro-worker, pro-business solution that modernizes Alabama’s labor laws and ensures that independent workers aren’t left behind.
Because Governor Ivey has signed the bill into law, starting next year, businesses can voluntarily make contributions into portable benefit accounts – accounts owned and controlled by the workers themselves. These funds can be used for needs like health care coverage, child care, parental leave, and retirement savings.
Importantly, the structure is voluntary and flexible, meaning there are no mandates forcing businesses or workers to participate.
That’s the kind of smart policy government should pursue—not one that dictates when, where, for whom, or how people work, but one that clears the way for them to work and succeed on their own terms.
In Alabama, we understand that our economy is only as strong as our workforce. That’s why we’ve passed initiatives like Working for Alabama and created the new Department of Workforce. This new law builds on that momentum and sends a clear message: Alabama is committed to helping all workers succeed—whether they’re clocking in at a plant or logging hours on an app.
Alabama is helping lead the way nationally. While legislation is pending in several states, Alabama is among the first states to act. At the federal level, legislation has also been introduced to expand portable benefits nationwide.
This bipartisan legislation presents a unique opportunity to support independent workers and fuel Alabama entrepreneurship. And for the tens of thousands of freelancers, gig workers, and self-employed individuals across Alabama, this is a big step in the right direction.
Portable benefits will remove barriers, spark job growth, and help more Alabamians take control of their future.
We’re not just recognizing the future of work–we’re helping build it!
