The document discusses the inadequacy of current workplace benefits for millions of workers in the U.S. and presents portable benefits as a solution to extend crucial benefits like health care and retirement to more individuals, especially non-traditional workers. Portable benefits are characterized as portable, prorated, and universal, allowing workers to retain benefits across different job arrangements. Policymakers are encouraged to develop effective models that enhance financial security and equity between traditional and non-traditional workers.

1. FUTURE OF WORK:
PORTABLE BENEFITS
ISSUE BRIEF : JUNE 2019
ALASTAIR FITZPAYNE, EXECUTIVE DIRECTOR,
FUTURE OF WORK INITIATIVE AT THE ASPEN INSTITUTE
ERIC LESSER, MASSACHUSETTS STATE SENATOR

2. 2
EXECUTIVE SUMMARY
Millions of workers today lack benefits that are essential to financial security. Portable benefits promise to address this problem,
improve the lives of workers, and strengthen the American economy.
Our System of Workplace Benefits Is Outdated and Inadequate
Benefits—including health care, retirement, workers’ compensation, and paid time off—are critical to household financial security.
Through the 20th century, many U.S. workers received benefits coverage through their employers. This system evolved over time,
a product of action, struggle and compromise between government, business, and labor leaders. As globalization, technology, and
short-term financial pressures have transformed the economy, workers have been left behind.
Portable Benefits Promise to Bring Essential Benefits to More Workers
As a complement to the employer-provided benefits system, portable benefits are suited to today’s economy, and promise to
extend benefits to more workers. Effective portable benefits models share three main characteristics: they are portable, prorated,
and universal. These benefits make up one part of a comprehensive solution to address the insecurity facing workers in America.
Policymakers Have a Path Forward
In order to develop effective portable benefits solutions, policymakers need to answer key design questions. There are a wide
range of models, and the solution that is most feasible and effective in each case likely differs. Policymakers have two options in
pursuing policy change in this area: creating entirely new portable benefits models, or expanding eligibility for existing or
emerging benefits to more workers, including non-traditional workers. Policymakers can move forward immediately; programs
proposed and underway offer examples of concrete policy solutions.

3. 3
PORTABLE BENEFITS FOR THE FUTURE OF WORK
1
2
3
NON-TRADITIONAL WORK:
WHO, WHAT, WHERE, WHY – AND SO WHAT?
PORTABLE BENEFITS:
DEFINITION AND EXISTING MODELS
THE CASE FOR PORTABLE BENEFITS POLICY

4. 4
OFFICE CLERK
MACHINE OPERATOR
PHYSICIAN ASSISTANT
FLIGHT ATTENDANT
NON-TRADITIONAL WORK LANDSCAPE
EMPLOYMENT
CLASSIFICATION
IRS DESIGNATION
BUREAU OF LABOR
STATISTICS DESIGNATION
ACCESS TO BENEFITS
DOES WORKSITE
ENTITY PAY WORKER?
NATURE OF WORK
ARRANGEMENT
REPRESENTATIVE
OCCUPATIONS
EMPLOYEE
INDEPENDENT
CONTRACTOR
1099
VARIES
INDEPENDENT
CONTRACTOR
CONTRACT
FIRM
TEMPORARY
HELP AGENCY
ON-CALLPART-TIMEFULL-TIME
A RANGE OF BENEFITS
MANDATED BY LAW;
OTHERS VOLUNTARILY
PROVIDED
FEW BENEFITS
MANDATED BY LAW
OR VOLUNTARILY
PROVIDED
SOME BENEFITS MANDATED BY LAW;
FEW BENEFITS TYPICALLY VOLUNTARILY PROVIDED BY EMPLOYERS
W-2
YES, WORKER PAID DIRECTLY
TRADITIONAL
WORKER
NO, WORKER EMPLOYED AND PAID
BY AN INTERMEDIARY
NON-TRADITIONAL WORKER
SUBSTITUTE TEACHER
FARM LABORER
CONSTRUCTION WORKER
RECEPTIONIST
WAREHOUSE ASSOCIATE
HR SPECIALIST
SECURITY GUARD
JANITOR
SOFTWARE DEVELOPER
HOTEL HOUSEKEEPER
REAL ESTATE AGENT
MASSAGE THERAPIST
RIDESHARE DRIVER
MUSICIAN
HAIR STYLIST
NOTE: REFLECTS FORMAL WORK ARRANGEMENTS
RETAIL CASHIER
BARTENDER
ADJUNCT PROFESSOR
FITNESS INSTRUCTOR

5. 5
HOW MANY NON-TRADITIONAL WORKERS ARE THERE?
ENGAGED IN ANY CAPACITY
PRIMARY AND SUPPLEMENTARY WORK
AS MAIN JOB
NON-TRADITIONAL WORK IS PRIMARY
ONLINE PLATFORMS
UBER, LYFT, TASKRABBIT, AND OTHERS
TOTAL U.S. WORKFORCE
ABOUT 1 IN 3
ABOUT 1 IN 10
ROUGHLY 1 IN 100

6. 6
SIDE HUSTLES
SOURCE: THE RISE OF ALTERNATIVE WORK ARRANGEMENTS: EVIDENCE AND IMPLICATIONS FOR TAX FILING AND BENEFIT COVERAGE, U.S. DEPARTMENT OF THE TREASURY, 2017
NOTE: SCHEDULE SE AND SCHEDULE C FILINGS ARE USED TO REPORT SELF-EMPLOYMENT INCOME AND SOLE-PROPRIETORSHIPS. THIS
COUNT INCLUDES ONLY SELF-EMPLOYED WORKERS, AND SO EXCLUDES MANY OTHER INDEPENDENT ARRANGEMENTS, LIKE TEMP-AGENCY,
ON-CALL, AND CONTRACT-COMPANY WORK. IN ADDITION, ALTHOUGH IT CONSIDERS COMPREHENSIVELY ALL TAX RETURNS FILED,
WORKERS MAY NOT ALWAYS BE FILING THE APPROPRIATE FORMS.
SCHEDULE SE
SCHEDULE C
PERCENTOFWORKERSFILING
13%
2000 2002 2004 2006 2008 2010 2012 2014
12%
11%
10%
9%
8%
Tax and other
administrative data
show steady increases
in the number of
people engaged in
independent work.

7. 7
TODAY: ONLINE PLATFORM ECONOMY
SOURCE: JP MORGAN CHASE
The online platform
economy has continued
to grow – now accounting
for roughly 1.6 percent
of the workforce
(based on sample).
OCT
’12
AUG
’13
JUN
’14
APR
’15
FEB
’16
DEC
’16
OCT
’17
2.0%
1.5%
1.6%
4.5%
1.0%
1.6%
.4%
.2%
.1%
1.0%
0.5%
0.0%
FRACTION OF THE SAMPLE GENERATING
INCOME FROM PLATFORMS IN EACH MONTH
ALL LEASING
TRANSPORTATION NON-TRANSPORT WORK
SELLING
SEP
’13
MAR
’14
SEP
’14
MAR
’15
SEP
’15
MAR
’16
SEP
’16
SEP
’17
MAR
’17
MAR
’18
5%
4%
3%
2%
1%
0%
FRACTION OF SAMPLE GENERATING INCOME
PLATFORM INCOME THIS PAST YEAR
PLATFORM INCOME THIS MONTH

8. 8
INDUSTRY SPOTLIGHT: FILM
LONG STANDING EXAMPLE OF GIG WORK
- Most work done by independent contractors on a temporary basis
BENEFITS ACCESS THROUGH GUILDS
- All workers (union and non-union) accrue benefits funded
by production companies but managed by guilds
WORK MAY BE INTERMITTENT BUT
COVERAGE IS CONTINUOUS
- Benefits follow workers from job to job

9. 9
OUR SYSTEM OF BENEFITS IS INADEQUATE
Need new ways to invest in
workers that match the realities
of today’s economy
Are unable to move jobs,
explore new opportunities,
or become entrepreneurs
Have increased insecurity
at a time when it’s needed
more than ever
BUSINESSES WORKERS

10. 10
NON-TRADITIONAL WORKERS LACK BENEFITS COVERAGE
SOURCE: 2017 CONTINGENT WORKER SUPPLEMENT, MAY 2017 CURRENT POPULATION SURVEY, BUREAU OF LABOR STATISTICS
EMPLOYER-SPONSORED HEALTH INSURANCE
NON-TRADITIONAL
WORKERS
NON-TRADITIONAL
WORKERS
TRADITIONAL
WORKERS
TRADITIONAL
WORKERS
EMPLOYER-SPONSORED RETIREMENT PLANS
8% 53% 8% 46%

11. 11
PORTABLE BENEFITS FOR THE FUTURE OF WORK
1
2
3
NON-TRADITIONAL WORK:
WHO, WHAT, WHERE, WHY – AND SO WHAT?
PORTABLE BENEFITS:
DEFINITION AND EXISTING MODELS
THE CASE FOR PORTABLE BENEFITS POLICY

12. 12
PORTABLE BENEFITS: KEY OBJECTIVES
IMPROVE INDIVIDUAL AND HOUSEHOLD FINANCIAL SECURITY
BY CREATING A BETTER SYSTEM OF BENEFITS
- Portable benefits models aim to extend essential benefits to more workers.
CREATE EQUITY BETWEEN TRADITIONAL AND NON-TRADITIONAL WORKERS
- Many companies currently have a strong financial incentive to hire workers as independent contractors,
for whom they are not required to provide benefits.
FUEL A DYNAMIC LABOR MARKET
- With benefits that are portable across work arrangements, individuals have the protection they need
to make a job change or take on an entrepreneurial endeavor.

13. 13
PORTABLE BENEFITS FOR THE FUTURE OF WORK
1
2
3
NON-TRADITIONAL WORK:
WHO, WHAT, WHERE, WHY – AND SO WHAT?
PORTABLE BENEFITS:
DEFINITION AND EXISTING MODELS
THE CASE FOR PORTABLE BENEFITS POLICY

14. 14
MODELS SHARE THREE KEY ATTRIBUTES
PORTABLE
Benefits are connected to an individual,
rather than a single employer, and
can be taken from job to job
without interruption in coverage
or loss of funding
1. 2. 3.
Benefits can be funded by
contributions from a variety of sources -
including employers, customers,
government, and workers -
either simultaneously or sequentially
Contributions can be allocated in
proportion to hours worked or other
relevant units of labor
Benefits are accessible to all workers,
regardless of hours worked or type
of work arrangement
PRORATED UNIVERSAL

15. 15
EXISTING MODELS: PRIVATE / NONPROFIT
Tax withholding, short term savings,
retirement and life insurance
Platform to search, compare and
purchase benefits, including:
health coverage, tax-related mileage
and expense tracking; dental, vision,
accident, term life and disability
insurance; and Health Savings
Accounts and other short and
long-term savings options
Partners with online platform
companies and traditional employers
Created one of the first benefits
offerings for freelancers
Individuals may purchase benefits
at rates negotiated by Freelancers
Union, including: health, dental,
disability, term life, liability,
and retirement

16. 16
UPDATE / EXPAND POLICY MODELS
MODERNIZE
UNEMPLOYMENT INSURANCE
EXAMPLE:
Self-Employment
Assistance Program
Allows unemployed workers to
continue receiving UI benefits
while starting a business
Implemented in Mississippi
and eight other states
MAKE EDUCATION AND
TRAINING MORE PORTABLE
EXAMPLE:
Lifelong Learning
and Training Accounts
Portable accounts funded by workers,
employers, and government, and
could be used by workers to pay for
education and training opportunities
over the course of their career
Proposed at Federal level,
in two states, and two cities
EXPAND PAID FAMILY AND
MEDICAL LEAVE
EXAMPLE:
Provide opt-in for
self-employed workers
Consider multiple income earners
Washington and Massachusetts have
launched portable PFML programs

17. 17
PORTABLE BENEFIT LEGISLATION: STATE EXAMPLES
Legislatively created in 1999;
expanded in 2017
Workers’ compensation insurance
for independent contractor for-hire
and rideshare drivers
Funded by 2.5% customer surcharge
Applies to any company that
connects workers with clients,
online or offline
Requires company contribution to
worker benefits fund; fee can be
passed through to consumer
Includes “hold harmless” provision
Legislation introduced to
establish a state portable benefits
innovation fund and grant program
NEW YORK BLACK CAR FUND WASHINGTON MASSACHUSETTS

18. INFO@BUSINESSFWD.ORG
BUSINESSFWD.ORG
1155 CONNECTICUT AVENUE NW
SUITE 1000
WASHINGTON, D.C. 20036
202.861.1270