Tennessee Supports Independent Workers

Tennessee is officially joining the portable benefits revolution! Since the passage of Utah’s SB233 during its 2023 legislative session, more and more states are exploring portable benefits legislation, but the “Volunteer State” will be the first to join Utah in codifying the policy.

A portable benefits account is designed to empower contract and freelance workers by helping them save for key benefits such as health insurance, income replacement, retirement, and disability insurance. These accounts are owned by—or legally tied to—the worker and remain with them as they move between jobs, industries, or locations. This portability gives independent workers the flexibility and security they need to thrive.

This year, Senator Bo Watson sponsored SB1377, accompanied by Representative Charlie Baum’s HB494, which allows any person or entity to contribute to a worker’s portable benefits account. The legislation includes three key protections:

  • All contributions are voluntary
  • Contributions from hiring parties cannot be used to determine employment classification
  • Contractors can use contributions to purchase whichever benefits best suit their needs.

This reform is especially meaningful in a state like Tennessee, where self-employment is common—particularly within Nashville’s vibrant music scene.

Additionally, this legislative victory aligns with broader efforts to protect independent work. In 2024, the Beacon Center of Tennessee filed a lawsuit on behalf of two freelance journalists in Nashville, challenging a federal rule that would have forced companies to reclassify many independent contractors as employees. Beacon Center, along with the Independent Women’s Voice, proved instrumental in advocating for SB1377 and helping it cross the finish line.

At Libertas Institute, we’ve extensively researched portable benefits and we stand ready to help your state pursue this opportunity as we have with Tennessee. If you’re a lawmaker, organization, or advocate in another state interested in pursuing similar legislation, we’d love to help you get started!

About the author

David Iglesias

David works as a State Government Affairs Associate at Libertas. He is responsible for partnerships with organizations and individuals interested in our innovative policies in much of the Eastern and Southern states of the country. Prior to Libertas, David studied economics at Loyola University in New Orleans, Louisiana during which time he authored various papers that would later be published by academic journals. He also served as a translator and liaison for humanitarian work to bring potable water to impoverished communities in Mexico and Guatemala. David currently resides in his home state of Utah. In his free time he enjoys working on music, riding motorcycles, and cooking.

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