With the shifts in Alabama’s economy driven by technology and evolving job markets, Congress is making significant progress in supporting independent workers across the state.
This session, Alabama’s Legislature approved a groundbreaking bill to bolster support for those who are self-employed and independent contractors.
From rideshare drivers to delivery personnel, entertainers, and freelancers, there are more than 79,000 independent contractors in Alabama. Whether it’s parents navigating a busy schedule, college students seeking gigs between classes, or retirees looking for extra income, these roles provide valuable opportunities to connect with others.
However, this flexibility often comes at a price. Many independent workers lack access to crucial benefits like healthcare and retirement plans. The new legislation seeks to modernize Alabama’s labor laws, ensuring that independent workers are not overlooked.
With Governor Ivey’s signature on the bill, starting next year, businesses will have the option to voluntarily contribute to mobile benefits accounts managed by the workers themselves. These accounts can be used for essential expenses like healthcare, childcare, and retirement savings.
What’s important is that the arrangement is flexible; there’s no requirement for businesses or workers to participate.
This is a smart approach for the government to take. It doesn’t dictate how, when, or where to work, but rather provides a framework for individuals to pursue their own paths to success.
In Alabama, we recognize that the strength of our economy is rooted in our workforce. That’s why we’ve initiated efforts like the working in Alabama program and the establishment of a new Department of Labor and Power. This law builds on that momentum and sends a strong message: Alabama is dedicated to supporting all workers.
Alabama is setting the pace at the national level. While other states are working on similar measures, Alabama has been proactive. Federally, there are also proposals aimed at expanding portable benefits across the nation. This bipartisan legislation offers unique opportunities to bolster independent workers and nurture Alabama’s entrepreneurial spirit. For many freelancers and gig workers, this marks a significant advancement.
Portable benefits can break down barriers, stimulate job growth, and empower more Alabamians to take charge of their futures.
We’re not just observing the future of work; we’re actively shaping it.
State Sen. Arthur O’ (R-Decatur) and state legislator Neil Lafferty (D-Birmingham) were the sponsors behind the legislation for mobile benefits accounts to support Alabama’s independent workforce.
