As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we bring you the latest news stories from around the web.
As of July 1, 2026, Idaho’s portable benefits law went into effect, making it possible for businesses to contribute to independent contractors’ benefit plans without adversely affecting their independent contractor classification.
Idaho is one of nine states (Alabama, Georgia, Idaho, Kansas, Louisiana, Tennessee, West Virginia, Wyoming, Utah) that have enacted portable benefits laws. At least four other states have pending portable benefit bills, including Florida, Mississippi, New Hampshire and North Carolina.
In general, portable benefit account laws allow businesses to contribute toward health, retirement, disability, paid time off (PTO) or similar benefits without those contributions being used as evidence that the worker was misclassified as an independent contractor.
Portable benefits close one of the gaps between being an employee and being an independent contractor. Employees generally have access to benefit plans, including health insurance, disability insurance and paid time off. Historically, independent contractors were responsible for their own benefits, which was an obstacle to being an independent contractor.
By offering contributions to portable benefit plans, businesses are able to attract and retain highly skilled independent contractors without increasing their risk of a lawsuit alleging that workers were misclassified.
Independent contractors are an important part of the economy, providing businesses with access to highly skilled, specialized talent on an agile, on-demand basis. More than 72 million Americans participate in independent work, representing a large and growing segment of the workforce, according to our most recent State of Independence report. By engaging independent talent, businesses and independent professionals can benefit in different ways:
Businesses can:
Increase workforce flexibility and adapt quickly to changing needs
Improve speed to market by accessing specialized talent when needed
Gain access to expertise that may not be available internally
Better manage labor costs while maintaining access to skilled professionals
Independent professionals can:
Enjoy greater autonomy and flexibility in how and when they work
Operate their own businesses while accessing opportunities with a variety of clients
Build careers that align with their skills, goals, and preferred working styles
Gain access to potential benefit options through portable benefit programs
The bottom line: More states are considering and enacting portable benefit laws, which is good for independent contractors and the economy.
For more information, check out our misclassification and compliance solutions for enterprises. If you have any questions about engagement, classification or management of your independent workforce, we’re always here to help.