Morrisey visits Elkins
Morrisey signs bill in Elkins
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ELKINS -- Gov. Patrick Morrisey visited Randolph County to sign the “Portable Benefit Account Act” on Wednesday, a bill that is meant to modernize worker protections for independent contractors across the state.
During a ceremonial bill signing at the Holiday Inn Express and Suites in Elkins, Morrisey signed House Bill 4009, which creates a portable benefits system to allow independent contract workers to “maintain essential protections across jobs while preserving their independent status.” Before signing the bill, Morrisey spoke about his continued goals to create new economic opportunities for the state.
“Obviously, one of the most important things we have to do is be cognizant of jobs,” Morrisey said. “Good-paying jobs, and then also making it a little bit easier for people to enter into the workforce. I’ve always argued that the single biggest challenge that we have as a state is workforce participation. If we can fix that, just imagine what we can do… that’s why this bill that we’re going to talk about today is particularly important.”
Morrisey mentioned previous issues in which, for independent contractors to receive benefits for the work their provide, they had to be classified as an employee of whoever they were currently working for. He said the State and the Independent Women’s Forum (IWF), a national policy group, thought this issue was worthy of the change. He explained that the bill is a “common sense legal framework” that allows businesses to voluntarily contribute benefits to independent contractors while allowing them to remain independent.
The governor said the state was making progress because it is doing things “the right way” by focusing on fundamentals, like affordable energy and investing in the state’s skilled workers.
“Those are critical things and that means that we’re going to be put more money in roads, more money in bridges, more money in the infrastructure that’s needed as opposed to what you saw in the past,” Morrisey said. “…There’s always going to be opportunities to compete, but we have to be stronger on the fundamentals because that’s what’s going to make West Virginia even more attractive to so many people.”
The ceremony was attended by community members and local leaders, including Delegate Elias Coop-Gonzalez, R-District 67, and Elkins Mayor Jerry Marco, who welcomed and thanked the governor for all the support he has shown Elkins and the area over the years.
Also in attendance were Delegate Jonathan Kyle, R-District 66, who introduced HB 4009 to the House floor this past legislative session. Kyle said it was “fantastic” that Morrisey elected to sign the bill in Elkins.
“It’s already in force as of, I believe, June 12, and we’re discussing with banks how we might be able to initiate this and utilize the language of the legislation,” Kyle told The Inter-Mountain before the bill signing Wednesday. “We’ve got 90,000 gig workers and independent contractors in this state, so this is a big impact for them to be able to get benefits. Health insurance, life insurance, disability. We’re really excited for them.”
Kyle previously stated to the Inter-Mountain that while those 90,000 independent workers play a vital role in West Virginia’s economy, most have lacked access to basic benefits like health coverage, retirement savings and income protection. HB 4009 is meant to address this gap by creating a portable benefits system to allow workers to “maintain essential protections across jobs while preserving their independent status.”
HB 4009 defines a portable benefit account as one 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, 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.
Standing alongside Morrisey on Wednesday was Patrice Onwuka, vice president for economic policy and director of the Independent Women's Center for Economic Opportunity, which is part of the IWF. Onwuka said the IWF was “really on board” with HB 4009 as the traditional nine to five job framework doesn’t always work for every person, especially those raising children or caring for aging parents. She said that the bill protects the worker’s ability to remain independent and flexible in their work.
“This is not a mandate on business,” Onwuka said. “We don’t believe in forcing businesses to do anything that does not make sense for them, but businesses can be encouraged and really enticed into this because it’s a way of keeping your flexible workforce working with you. There are tax provisions that are an incentive, a sweetener for both the independent contractor as well as for the business, but most importantly, it respects the federal law, it respects the state law and does not change that classification.”
Onwuka also praised West Virginia for being one of the first states in the region to pass a bill like this, calling the state a leader in the policy.
“This is so important because I think it sends the signal to so many other governors and legislators that this is something you want to jump on board with,” Onwuka told The Inter-Mountain after the bill signing. “That this should be part of your economic package and your way of really boosting your workforce. The governor (Morrisey) has been a leader. This legislature has been a leader and really something we think is going to be a way to continue to modernize our workforce.”
When asked how he felt about West Virginia being one of the first to implement this kind of legislation, Morrisey said it felt “incredible.”
“We’re in a competition with other states, and when you could be first in how positively you’re treating a lot of these independent contractors, that makes a difference,” Morrisey told The Inter-Mountain after the signing. “We’re entering a phase, there’s a lot of construction, there’s a lot of new growth that’s coming. You want to make sure you’re treating people well and we’re incentivizing people to locate right here in the Mountain State, so I think that this is a really incredible development and this is another area where we have an advantage. I’m looking for different ways we can gain advantages over all the states that we touch.”