SB363 Alabama 2018 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2018

Title

Portable benefit plans established for contractors of market place platforms.

Summary

SB 363 would let marketplace platforms offer portable benefit plans to independent contractors funded by platform contributions, while preserving independent contractor status and limiting platform liability.

What This Bill Does

The bill allows marketplace platforms to offer contractor benefit plans to workers who provide services through the platform. It defines key terms such as marketplace platform, contractor, plan, participant, and plan administrator, and lets the Department of Labor adopt rules to run the program. Participating platforms must sign a plan agreement with a plan administrator and can add contributions to invoices for covered services. The act preserves that contractors are not employees and limits platform liability for contractor or customer actions, while allowing voluntary education and training for contractors.

Who It Affects

• Marketplace contractors – may participate in a contractor benefit plan that provides health, disability, retirement, life, vision, dental, and other benefits; they have accounts tracking contributions and can transfer or withdraw benefits; they remain independent contractors rather than employees.
• Marketplace platforms – may elect to contribute to contractor benefit plans, pay a $500 filing fee to the Department of Labor, and must enter into plan agreements; contributions may be added to customer invoices and the platform is shielded from certain employment liability claims.

Key Provisions

• Marketplace platforms may elect to contribute to a marketplace contractor benefit plan for contractors using the platform, after giving notice to the Department of Labor and paying a $500 fee.
• Participating platforms must enter into a plan agreement with a plan administrator to establish and maintain the contractor benefit plan.
• The benefit plan must be governed by a written instrument, maintained to provide benefits and cover plan expenses, and keep accounts for each participant funded by the platform's contributions.
• The plan must allow transfer of accrued benefits to other plans and permit withdrawal of monetary value with an admin fee and a 25 percent withdrawal penalty; fiduciaries must manage the plan.
• A minimum earnings threshold for eligibility may be set (up to $500); if some contractors do not meet it, contributions for those nonqualifying contractors must be redistributed to qualified participants.
• Contractors are not employees; platform contributions to the plan and the plan itself do not create an employment relationship, and platforms have limited liability for contractor and customer actions; the Department of Labor may issue rules to implement the act; the act becomes effective on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Contractors