CHARLESTON — A Randolph County delegate has introduced a bill that will “modernize worker protections” for independent contractors across the state. 

On Feb. 3, Jonathan Kyle, R-District 66, introduced House Bill 4009, which would define and create the Portable Benefit Account Act. HB 4009 is currently in the House Banking and Insurance Committee.

Kyle said the nearly 90,000 independent contractors across the state play a vital role in West Virginia’s economy, yet most lack access to basic benefits like health coverage, retirement savings and income protection. HB 4009 is said to address this gap by creating a portable benefits system to allow workers to “maintain essential protections across jobs while preserving their independent status.”

“Independent contractors are the backbone of many growing and valuable industries in West Virginia, from beauticians to home repair to digital services,” Kyle said in a statement to The Inter-Mountain. “HB 4009 gives them the security they deserve without sacrificing their independence and gives businesses a way to help without creating an employer-employee relationship.”

HB 4009 defines a portable benefit account as an account that has been opened by an independent contractor to fund the purchase of one or more benefit plans, administered by a portable benefit account provider and/or assigned to a beneficiary of one or more benefit plans rather than to an employer or hiring party. A portable benefit plan will include retirement benefits, health insurance, life insurance and income replacement insurance, all “without limitations.”

“A person or entity, including an independent contractor or an internet-based or application-based company, may voluntarily contribute funds to a portable benefit account for an independent contractor,” HB 4009 states. “Employment status as an independent contractor shall be determined by the employment status factors set out in this code. A contribution to a portable benefit account shall not be used as a criterion for determining a worker’s employment classification.”

Under this framework, Kyle said that benefits will belong to the worker and move with them from project to project. Hiring partners would be able to contribute to these benefits without classifying the worker as an employee, giving businesses a clear and legal way to support contractors without jeopardizing their valuable flexibility.

HB 4009 also states that a contribution to a portable benefit account may be made using “the funds of the hiring party or a percentage of funds withheld from compensation owed to an independent contractor.” This applies if the withholding of compensation is expressly agreed to in writing, if the written agreement is clear, unambiguous and prominently displayed either in a work contract or a separate notice, if the withholdings are voluntary and require an independent contractor to opt in and if an independent contractor chooses to opt out of the agreement.

As Kyle explained, HB 4009 is part of the House Republican Caucus’ Jobs First Opportunity Everywhere initiative, which focuses on strengthening opportunities and protections for West Virginians and businesses of all sizes.