R Street Testimony in Support of GA HB 987, “Voluntary Portable Benefit Plan Act”

Testimony from:

Marc Hyden, Senior Director, State Government Affairs, R Street Institute

In SUPPORT of House Bill 987, “Voluntary Portable Benefit Plan Act”

January 28, 2026

House Industry and Labor Committee

Chairman Werkheiser and members of the committee:

My name is Marc Hyden. I am a Georgia resident and the senior director of state government affairs at the R Street Institute, a nonprofit, nonpartisan public policy research organization. Our mission is to engage in policy research and outreach to promote free markets and limited, effective government in many areas, including the future of work. That is why HB 987 is of special interest to us.

In its simplest form, Rep. Todd Jones’ legislation defines portable benefits and clarifies that voluntarily contributing, as a form of compensation, to portable benefits accounts does not constitute evidence of an employer/employee relationship. I believe that this is already the case in the Georgia code, but it isn’t explicitly spelled out. So this bill would clarify, rather than transform, the law, while still delivering far-reaching benefits.

With the rise of gig work—like driving for rideshare apps—Georgia’s economy has fundamentally evolved in recent years, but much of our code has not kept pace. Over 1 million Georgians are now engaged in some form of self-employment, and while the exact number is unknown, a number of people make a living solely through gig work. One gig company found that around 16% of its drivers only earn wages via gig work, and many prefer it that way.

Gig work provides them the flexibility to earn when and however they wish. They are their own bosses, but independent contractors often must buy their own benefits, like health insurance, which costs on average nearly $500 a month. Indeed, nearly everything has become vastly more expensive since the pandemic. Unsurprisingly given this cost, there are roughly 1.2 million uninsured Georgians, and 28% of gig workers would like health insurance—among other benefits, too. Jones’ bill can help them secure these.

Unlike most benefit packages that are connected to the employer, portable benefits are attached to and controlled by the worker. This means regardless of where they work, their benefits follow them. Under a voluntary portable benefits model, an independent contractor opens and controls a portable benefits account managed by a bank or third-party platform. Entities that pay workers may—if all parties voluntarily consent—then contribute to that account as a form of compensation. Independent contractors can contribute their own earnings to this account, too, and can even pool contributions from several entities they work for into the same account.

Funds in this account can then be used for whatever benefits the worker chooses. This can include health insurance and expenses, retirement, paid leave, and so forth. A national poll revealed that over 80% of self-employed workers would like portable benefits. Meanwhile, during a portable benefits pilot program in Georgia, nearly one quarter of a company’s independent contractors opted into the program.

Even though contributing voluntarily to portable benefits accounts seems legal in Georgia already, Georgia’s code does not specifically define or explicitly authorize it by name. As a result, some companies fear that making contributions to portable benefits accounts could serve as evidence of an employer/employee arrangement.

In order to modernize the code, expand access to benefits, reduce the uninsured population and address affordability, the Peach State ought to follow the lead of Utah, Alabama and Tennessee. They have each ratified portable benefits legislation. If Georgia follows their example and enacts a voluntary portable benefits system, it will empower workers and place critical benefits within reach for many.

For these reasons, I appreciate Rep. Jones’ leadership on this issue and urge your support for HB 987.

Respectfully,

Marc Hyden
Senior Director, State Government Affairs
R Street Institute
(404) 918-2731
mhyden@rstreet.org