The working class in Utah had a choice: enjoy the flexibility and freedom inherent to working at companies like DoorDash and Uber or enjoy retirement and health benefits working at a 9-5 job. Despite the rising popularity of gig work, laws linking benefit eligibility with full-time employment status remained unchanged. That is until Americans for Prosperity propelled first-of-its-kind legislation through the Utah State House, in what would become a monumental win for workers.
For college students, single family income earners, and aspiring entrepreneurs, the gig economy offers a lifeline – a chance to earn income on their own terms. This flexible model allows individuals to earn supplemental income while working nontraditional hours or juggling other work or personal ventures.
However, the freedom that comes with being an independent contractor comes at a cost, as benefits such as health insurance and retirement are often tied to full-time employment at a company, therefore disqualifying contract workers.
State Senator John Johnson, Chief Sponsor of SB233, notes that “in today’s environment it’s not like it was 50 years ago where people would go to work for one company and stay there their entire career.” It is time that labor and benefit laws are up to date with reality, especially at a time when inflation is averaging between 3-4%.
Eager to get involved, AFP Utah worked alongside coalition partners such as Libertas Institute and Mercatus Center, to engage communities impacted by outdated labor rules. They found the lack of benefits was creating undeniable instability and uncertainty. Heather Andrews, the Utah State Director for AFP, saw this issue firsthand when her daughter transitioned to gig work and found herself stuck without any health benefits.
Unfortunately, as AFP dove deeper it was evident that Heather’s story was not unique, but rather commonplace. Meanwhile, companies structured for independent contractors were eagerly seeking solutions that balanced their main value-add — freedom and flexibility — with innovative ways to provide security for their workforce. The industry needed guidance and market-driven solutions from an organization used to fighting for the little guy.
AFP worked to change the rigid, one-size-fits all worker classification laws, which ignored the surge of independent contract work and an evolving labor market. As a result, they presented the Portable Benefit Plan linking benefits to the individual as opposed to the employer. Qualifying workers can receive payments to a portable benefits savings account to which companies like Uber and DoorDash contribute, and those funds can then be used for health, dental, vision, and PTO.
To garner attention around the plan, AFP did what it does best, mobilizing grassroots support. Over the next several months, they were relentless in collecting thousands of untold stories and elevating them to legislators and key stakeholders; they engaged and educated citizens, creating a grassroots army of impassioned individuals dedicated to the cause; and they initiated key conversations under the dome. As a result, business owners inspired by AFP’s efforts rallied to form a working group to continue elevating voices around the issue.
State Senator Johnson, a key sponsor of the bill recalls, “We got a lot of support for this bill in Utah, it was a very bipartisan effort. AFP was there to help us all along the way and Heather was really instrumental in helping us talk to people in the legislature.”
AFP’s efforts were a success — on March 23, 2023, Utah Governor Spencer Cox signed the Portable Benefit Plan allowing for both public and private entities to voluntarily opt-in to the benefits program.
The policy changed lives across Utah for the better and serves as a reminder that amplifying authentic stories on the ground connects citizens to their lawmakers and enables innovative solutions to achieve prosperity.
In an effort to greater their impact, AFP is using the Portable Benefit Plan as a model for legislation providing security for independent contractors across the country.
© 2024 AMERICANS FOR PROSPERITY. ALL RIGHTS RESERVED. | PRIVACY POLICY
Receive email alerts to learn how to get involved