This bill changes how the government determines whether someone is an employee or an independent contractor. Right now, when deciding if a worker qualifies as an employee (which matters for things like minimum wage, overtime, and other labor protections), courts and agencies sometimes look at whether the company provides benefits. This bill says that providing benefits should no longer count as a factor in making that determination.

Specifically, companies could offer independent contractors things like health insurance, retirement contributions, or other benefits that workers can keep even after they stop working for that company—and this wouldn't make them look more like employees. The bill also says that if a company contributes money toward these benefits on behalf of a worker, that contribution also shouldn't be considered when deciding employment status.

The practical effect is that companies can now offer portable benefits to independent contractors and gig workers without worrying that these benefits will be used as evidence that those workers should actually be classified as employees. This could make it easier for companies to provide benefits to freelancers and independent workers, but it also means those workers might have a harder time arguing they deserve employee protections and benefits based on the fact that they receive benefits from the company.