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California considers portable benefits for gig workers

A California proposal would establish a portable benefits system for “digital marketplaces,” specifically enabling gig economy employers to contribute toward benefits for their workers.

Attorney Benjamin Ebbink with law firm Fisher Phillips discusses the proposal in a Lexology blog post [1]. Under the current proposal, digital marketplaces would be able to contribute to a marketplace contractor benefit plan to help pay for benefits like medical care, liability insurance, retirement benefits and paid leave. The plan would allow participants to transfer accrued benefits from plan to plan as their “gigs” change.

The California proposal would also provide that individuals that provide services through such a digital marketplace would be “treated as” independent contractors.

 

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