A new state task force in Alabama is studying how to provide benefits such as retirement accounts and paid time off to the nearly 79,000 Alabamians who are currently employed by app-based delivery and ride-sharing services. The Portable Benefits Task Force, created by the Legislature earlier this year, is looking at ways to offer economic security and flexibility to gig workers in the state.
The task force is facing challenges in working within federal rules and definitions regarding contract employees and traditional employees who qualify for employer-provided benefits. Co-chairs Sen. Arthur Orr and Rep. Neil Rafferty are leading the effort to find solutions to provide portable benefits to workers in the gig economy.
Companies like Shipt have already started offering portable benefits to their workers in other states, and the task force is looking at similar options for Alabama. The goal is to create a menu of benefits that can be company or self-funded, without mandating companies to offer them. Benefits such as retirement accounts, child care benefits, and health insurance are being discussed as potential offerings.
The task force has nearly 18 months to study the issue before reporting possible recommendations to lawmakers. The goal is to help companies attract workers and provide financial security for working families in the gig economy. Ultimately, the task force aims to promote economic security, flexibility, and portability of benefits for all workers in Alabama’s growing gig economy.
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