Kansas is poised to join a growing number of states experimenting with a new approach to worker benefits aimed at the nation’s expanding gig and freelance workforce.
Lawmakers this session approved House Bill 2602, legislation designed to address a longstanding challenge facing independent workers: access to benefits.
Gig workers and freelancers often work without traditional benefits such as health insurance, retirement plans or paid leave. But companies that hire independent contractors typically avoid offering benefits because doing so can risk having those workers legally classified as employees rather than contractors.
HB 2602 creates a workaround.
The legislation allows companies to contribute money to benefit accounts for independent contractors without risking having those workers legally classified as employees.
Rep. Laura Williams, the Lenexa lawmaker who sponsored the bill, said the approach allows companies to expand access to benefits while preserving the flexibility many independent workers value.
“Portable benefits offer a smart, voluntary way to expand access to benefits without creating new mandates or burdens for employers,” Williams said. “It’s a balanced solution that supports workers, strengthens our economy, and reflects the realities of today’s workforce.”
Another key feature is portability. Workers control their own benefit accounts and can take them with them as they move from job to job, allowing multiple companies to contribute over time.
The measure passed the Kansas Senate 40–0 and cleared the House earlier with strong support. It now awaits action from Gov. Laura Kelly.
If signed into law, Kansas would join a small but growing group of states exploring portable benefits, an idea first implemented in Utah in 2023 and later adopted in Tennessee and Alabama. Several other states—including Georgia, Wyoming and New Hampshire—are considering similar proposals during their current legislative sessions.
Led by states, the model reflects the reality of a changing workforce, where millions of Americans now earn income as freelancers, contractors or gig workers rather than traditional employees.
What Are Portable Benefits?
Portable benefits are benefits that belong to workers rather than being tied to a single employer.
Under traditional employment, benefits such as health insurance, retirement contributions or paid leave are typically offered by an employer and disappear if a worker leaves the job. Independent contractors, who are considered self-employed, generally must arrange and pay for those benefits themselves.
Portable benefits attempt to bridge that gap.
Under the model, companies that hire independent contractors can voluntarily contribute money into a worker-controlled benefits account. Workers may also contribute to the account themselves, and because the account belongs to the worker, it follows them from job to job.
Those funds can typically be used for things such as health insurance premiums, retirement savings, disability or life insurance, paid leave savings or emergency savings. Unlike wages, the money generally must be used for benefit-related expenses rather than everyday spending.
The Kansas law does not create a state-run program. Instead, it removes a legal barrier that has historically discouraged companies from offering benefits to contractors. Portable benefits accounts would typically be administered by third-party benefits providers or financial institutions, similar to how retirement plans or health savings accounts are managed.
Support and Skepticism
Supporters say portable benefits recognize the realities of a workforce that increasingly includes independent workers. Research cited in testimony on the Kansas bill estimates there are roughly 220,000 self-employed workers in Kansas, working in fields ranging from delivery services and ride-share driving to real estate, software development and small business ownership.
Advocates say the current system often forces workers to choose between flexibility and access to benefits. Portable benefits, they argue, provide a middle ground.
Labor advocates and some worker-rights groups remain skeptical. Critics argue companies could offer relatively small contributions to benefit accounts instead of providing full employment benefits such as employer-sponsored health insurance, unemployment coverage or workers compensation.
The debate reflects a broader national discussion about how labor laws should adapt to the rise of gig and freelance work.
What Happens Next
If Gov. Kelly signs the bill, Kansas would become one of the latest states to establish a legal framework allowing portable benefits programs.
The law itself would not immediately create benefits accounts. Instead, it would allow companies, benefits platforms and financial institutions to develop programs that independent workers could choose to join.
Whether those programs emerge—and how widely they are adopted—will likely determine whether portable benefits become a lasting shift in how benefits are delivered in a rapidly evolving workforce.