Georgia CommonsHB 987: Voluntary Portable Benefit Plan Act; enact
Last action May 11, 2026 · Effective Date 2026-07-01
House Bill 987 creates a voluntary system letting businesses or apps contribute money into portable benefit accounts for independent contractors, without those contributions turning the worker into an employee under Georgia law.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest LegiScan holds.
In plain language
Independent contractors in Georgia, such as gig workers or freelancers, generally do not get employer-provided benefits like health insurance or retirement plans because they are not classified as employees. This bill creates a new legal framework allowing any person or business, including app-based companies, to voluntarily put money into a 'portable benefit account' owned by the contractor. The contractor controls the account and can use the funds toward benefit plans such as health insurance, disability insurance, life insurance, retirement savings, or related costs. Contributions can also come from money withheld from the contractor's pay, but only if the contractor agrees in writing, the agreement is clearly spelled out in the contract, the withholding is opt-in, and the contractor can stop it at any time. Importantly, making these contributions does not make the paying business an 'employer' or turn the contractor's work into 'employment' under Georgia's unemployment insurance law (O.C.G.A. Chapter 8 of Title 34). The law is called the 'Voluntary Portable Benefit Plan Act' and takes effect upon repeal of conflicting laws.
What the bill does
- Creates a new legal category called a 'portable benefit account' that an independent contractor owns and controls, funded by voluntary contributions from any person or business.
- Allows contributions to come from withheld pay only if there is a clear written agreement, the contractor opts in, and the contractor can opt out at any time.
- Defines who can manage these accounts: banks, financial institutions, investment management firms, or tech providers working with them.
- Specifies that portable benefit plans can cover health insurance, unemployment insurance, disability insurance, life insurance, or retirement benefits.
- States that making these voluntary contributions does not make the paying business an 'employer' or reclassify the contractor as an 'employee' under Georgia's employment security law.
Who it affects
Independent contractors, including gig and app-based workers, who could gain portable benefit accounts; businesses and apps that hire contractors and may choose to contribute; and banks, financial institutions, and investment firms that could serve as account providers under the new framework.
Why it matters
Contractors could gain access to benefits like retirement savings or insurance that are normally tied to traditional employment, without losing their independent contractor status. Businesses could offer these benefits without risking reclassification as employers, which affects unemployment insurance and other legal obligations under Georgia law.
Key provisions
- Section 1 gives the law its short title, the 'Voluntary Portable Benefit Plan Act.'
- Section 2 adds a new Code section (O.C.G.A. § 34-8-43.1) defining key terms: hiring party, independent contractor, portable benefit account, portable benefit account provider, and portable benefit plan.
- Subsection (b) allows any person or entity, including internet or app-based businesses, to voluntarily contribute funds to a contractor's portable benefit account.
- Subsection (c) permits contributions to come from withheld pay only with a clear written opt-in agreement that the contractor can cancel at any time.
- Subsection (d) states that these voluntary contributions do not make the contributing party an employer or reclassify the contractor's work as employment under existing Georgia law (O.C.G.A. §§ 34-8-33 and 34-8-35).
- Section 3 repeals any conflicting laws.
From the bill
“Voluntary contributions by a person or entity to a portable benefit account of an independent contractor as provided for in subsections (b) and (c) of this Code section shall not cause such person or entity to be classified as an employer”
“(4) The independent contractor may choose to opt out of such withholding at any time.”
Status timeline
- Effective Date 2026-07-01
- Act 466
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
Show full history (15 actions)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Todd Jones (R, HD-025)
- Brad Thomas (R, HD-021)
- Victor Anderson (R, HD-010)
- Mike Cameron (R, HD-001)
- Carter Barrett (R, HD-024)
- Shawn Still (R, SD-048)
Votes
- House voteFebruary 17, 2026
108 yea, 52 nay (5 not voting, 10 absent)
- Senate voteMarch 20, 2026
44 yea, 1 nay (3 not voting, 6 absent)
Topics
- independent contractors
- gig workers
- employee benefits
- employment law
- retirement and health benefits