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Two Policies Both Parties Can Agree On: The Portable Benefits for Independent Workers Pilot Program Act and the Upskilling & Retraining Assistance Act
Jobs for the Future (JFF)
Building a Future That Works.
Published Aug 28, 2024 + Follow
This #LaborDay marks the 130th anniversary of the federal holiday honoring the many contributions workers make to America’s economic strength, prosperity, and well-being. At Jobs for the Future, we believe everyone deserves a job that improves their quality of life— a job that provides good benefits, pays family-sustaining wages, and gives workers flexibility, autonomy, stability, and advancement opportunities. Yet, federal labor policy has failed to keep pace with today’s workers or the rapidly changing landscape of the labor market, leaving millions of people struggling to make ends meet and to get ahead in this economy.
Voters across political divides are making clear they want elected officials to prioritize employment and economic issues this campaign season. According to a recent survey commissioned by JFF, more than 75% of registered Democrats, Republicans, and Independents agree that people working full-time jobs should be able to earn enough to support their families. Voters also want increased funding for job training and child care, among other kinds of work support. However, only 40% say they are very or somewhat satisfied with the attention candidates are giving to these kitchen-table issues.
Through JFF’s national policy campaign, called No Dead Ends, we urge policymakers from both sides of the political aisle to pass stalled bipartisan legislative proposals that would eliminate the dead ends that so many people in this country face at work. This election season, we call on elected officials and candidates to commit to the following bipartisan policy solutions and help people get ahead during times of economic uncertainty and personal adversity:
1)
Pass the Portable Benefits for Independent Workers Pilot Program Act.
Through congressional action over the past century, the U.S. established the 40-hour work week, a minimum wage and a minimum working age, workplace safety and employment protections, and unemployment insurance. Yet, with the rise of the gig economy, growing ranks are working as independent contractors, as contingent workers, and in part-time and temporary roles that are not guaranteed these protections and workrelated benefits or that make access too difficult and expensive.
The Portable Benefits for Independent Workers Pilot Program Act would begin to address this challenge by enabling gig workers to access work-related benefits and carry them from job to job. Under the legislative proposal, the U.S. Department of Labor would award $20 million in competitive grants to encourage states, localities, and nonprofit organizations to test and evaluate the effectiveness of models for deploying portable benefits, such as retirement savings, workers' compensation, life or disability insurance, sick leave, training and educational benefits, and health care. Senators Mark Warner (DVA) and Todd Young (R-IN) reintroduced this legislative proposal during the spring of 2023 as S. 1696, and a similar bill, H.R. 3482, is sponsored in the House by Representative Suzan DelBene (D-WA).
2) Pass the Upskilling and Retraining Assistance Act.
In today’s dynamic economy, workers need to upgrade their skills more often than ever before, as the “half-life” of skills has shrunk since the 1980s from at least 10 years to only about 4 years now. Employers have a critical role to play in investing in the skills development of their workers. While roughly half of all workers receive training from their employers, a recent MIT study found that employer-provided training is more likely to benefit workers who are already highly educated than employees with lower levels of educational attainment.
The Upskilling and Retraining Assistance Act aims to incentivize more training through employers. The measure, introduced last year by Senators Todd Young (R-IN) and Maggie Hassan (D-NH) as S. 3296, would increase the amount of tax-free educational assistance that employees can receive from their employers. A companion bill, HR. 6401, was introduced by Representative Danny Davis (D-IL) and co-sponsored by Representative Randy Feenstra (R-IA).
The existing tax benefit, unchanged since 1986, only allows employers to cover up to $5,250 in educational programs before workers are required to pay taxes on these benefits. Recognizing this current limit is far below the cost of most higher education programs, the bill would authorize a two-year temporary expansion of the benefit to $12,000. It would also expand the tax exclusion to include the cost of education-related tools and technology, including hand tools, computers and software, internet access, licensure fees, and other items deemed necessary to complete the educational programs.
No Dead Ends is JFF's national policy campaign to eliminate dead ends for all learners and workers.
Join us in advocating for #NoDeadEnds.
Broadening access to work-related benefits and incentivizing skills development are two key bipartisan approaches for improving the quality of jobs in the United States. At JFF, we’ve made it our North Star to get 75 million people facing systemic barriers to advancement into quality jobs by 2033. Our Quality Jobs Framework not only defines what makes for a #qualityjob, but also lays out the steps that employers, community partners, and policymakers can take to strengthen workplace conditions and economic opportunities.
This election season, JFF is calling for both parties to act on the employment and economic issues that voters really care about. Our campaign, #NoDeadEnds, includes a four-part plan to fix our outdated education and workforce systems.
Read our No Dead Ends policy road map to learn more about our policy recommendations.
Curious about job quality?
Take this quick, one-question poll for workers or this one for employers. Weigh in now before the polls close on Labor Day!
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Read news coverage about our June 2024 survey of registered voters.
