House Bill 494 introduces the "Voluntary Portable Benefit Plan Act," which amends Tennessee law to establish a framework for portable benefit plans that independent contractors can utilize. The bill defines key terms such as "employee," "hiring party," "independent contractor," and "portable benefit plan," which includes various types of insurance and retirement benefits. It allows public and private entities, including internet-based companies, to voluntarily contribute to these plans as a form of compensation for independent contractors. Importantly, contributions to these plans cannot be used to determine a worker's employment classification, and independent contractors must opt-in to any withholding of compensation for these contributions.

Additionally, the bill makes specific amendments to existing laws. It replaces certain language in Tennessee Code Annotated regarding compensation from third-party platforms to include contributions to portable benefit accounts. It also removes language that previously stated marketplace platforms provide no insurance benefits to contractors and clarifies the terms under which personal vehicles are controlled or managed. The act is set to take effect upon becoming law, emphasizing its importance for the welfare of the public.

Statutes affected:
Introduced: 50-8-101(1)(B), 50-8-101, 50-8-102(a)(9), 50-8-102, 65-15-301(4), 65-15-301