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Philadelphia’s Portable Benefits Plan Could Be Gig Economy Model

From JDSupra, Rick Grimaldi reports on a Philadelphia bill that creates portable benefits for domestic workers and Rick suggests it could be amodel that other cities and states could adopt. Rick writes:

Philadelphia is about to become the first city in the country to approve legislation that would create a portable bank of paid time off for domestic workers. And it could create the model for a similar blueprint that would aid the gig economy workforce if implemented on a wider scale.

The City Council unanimously passed the Domestic Worker Bill of Rights several weeks ago, and Mayor Jim Kenney is expected to sign it into law in the near future. Among other things, it will create a portable benefits system for domestic workers – such as housecleaners, home health aides, and nannies – to receive paid time off. It is expected to benefit upwards of 16,000 workers right off the bat, with that number increasing in future years.

But the ramifications could be much more significant than that. As reported by Juliana Feliciano Reyes in the Philadelphia Inquirer, “what happens here could be a model for millions of American workers without adequate access to benefits because they are subcontractors or juggling multiple part-time jobs or driving for Uber to supplement their income — so-called nontraditional work arrangements that have become increasingly common and prominent.” In other words, this plan could be readymade for the gig economy workforce.

How Does Philadelphia Plan Work?

The details of the Philadelphia plan? Similar to the way most paid sick leave laws work, eligible workers will accrue one hour of PTO for every 40 hours they work. There will be provisions addressing accrual, and a maximum cap, and carryover, and other details, but the key factor is that domestic workers can take these benefits with them from one job to the next.

Inevitably, when the conversation comes to benefits, the question of funding gets raised. And many eyes across the country will look to how Philadelphia handles the matter to see how sustainable the funding platform is. Each employer will contribute a prorated amount to a worker’s PTO bank based on the worker’s pay. The mayor’s office estimates that it will lead to a 2.5% increase in costs for all employers contributing to the system.

Read the full story at Philadelphia’s Portable Benefits Plan Could Be Gig Economy Model | Fisher Phillips – JDSupra

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