Across the Sunshine State, nearly 890,000 gig workers and freelancers have stepped away from traditional 9-to-5 in favor of flexible, independent work. A diverse range of workers have chosen these work arrangements for greater control over how they choose to work or earn supplemental income. But that flexibility comes at a steep cost. By working outside the bounds of a traditional job, independent workers must often forgo health insurance, paid leave, or retirement savings plans simply because our benefits system hasn’t caught up. A promising new solution called portable benefits could change that.
Portable benefits are essentially specialized bank accounts that enable businesses to contribute funds for an independent contractor’s benefits. The contractor maintains complete freedom to allocate that money according to their needs, whether for health insurance premiums, retirement savings, or personal priorities. Unlike traditional benefits that vanish when employment ends, portable benefits remain with workers as they move between gigs, clients, and platforms because they’re independently owned by the workers themselves.
This solution is gaining traction across Florida. According to a poll by The James Madison Institute, 65% of Floridians support independent contractors having access to portable benefits, higher than national polls indicating 61% support. Among working-aged Floridians between 35 to 54, support rises even higher to 71%.
At the national level and in many states, outdated labor laws stand in the way. Right now, businesses that offer benefits to independent contractors risk being accused of misclassifying their workers. If a business is found to misclassify a worker, it can be subject to additional tax penalties and steep fines. To avoid that risk, businesses choose not to provide independent workers with benefits at all. This leaves independent contractors without healthcare or retirement savings solely because they choose a more flexible working arrangement.
Fortunately, a simple policy change can fix this outdated benefits framework. Portable benefits legislation would clarify that offering benefits to independent contractors does not count as evidence of an employer-employee relationship. This small clarification would give businesses the legal certainty they need to support today’s modern workforce.
Florida’s flexible workers don’t fit a single profile. They range from full-time professionals to part-time caregivers, from students to retirees. A one-size-fits-all benefits policy would miss the mark. Under a proposed portable benefits framework, workers could choose how to use the support they receive—whether that’s offsetting healthcare costs or helping to pay for childcare. That kind of flexibility matches the spirit of the work itself.
Providing benefits would be entirely voluntary, and legislation wouldn’t require any business to offer portable benefits. But if a company wanted to, it could finally do so without penalty. There’s also reason to believe businesses might want to. When consumers were asked whether they’d be more likely to use a service that offered benefits to its gig workers, over 40% said yes. In a competitive marketplace, this shift in consumer preference could translate to a significant boost in market share for companies that lead the way.
Other states are already making moves. Utah, Tennessee, and Alabama have all updated their employment laws to accommodate new working arrangements and provide independent workers with benefits. Alabama’s legislation went a step further by making contributions to portable benefit accounts tax-deductible for both the contributor and the recipient. This addition gives portable benefits the same tax-advantaged basis as traditional employer-sponsored benefits, creating true parity between different work arrangements.
Florida had an opportunity to join this forward-thinking group. Similar legislation was proposed this session, but never made it to a vote. In fact, neither the House nor Senate version was even heard in committee. This lack of action leaves Florida behind in an area where it could and should lead.
In many policy areas, Florida sets the standard for the nation. Portable benefits should be one of them. Lawmakers have a clear opportunity to modernize the state’s labor laws to match the way people work today. With 65% of state residents supporting the idea—a level of approval that would pass the 60% threshold required for constitutional amendments—lawmakers essentially have a mandate to move forward with this legislation in 2026.
Florida lawmakers should update our benefits system to support the flexibility, opportunity, and freedom for Floridians to choose the kind of work that fits their lives without forcing them to sacrifice essential benefits. It’s time for Florida to recognize that the nature of work has changed, and our policies should change with it.
