Philadelphia proposes bank of paid time off for gig workers.

Pending legislation in Philadelphia would create a portable bank of paid time off (PTO) for domestic workers. Domestic workers will be able to take these benefits with them from one job to the next. Provisions will address accruals, a maximum cap, carryover and other details.

While the bill would be limited to home health aides, nannies and house cleaners, many see it as a future model for providing similar benefits to freelancers and other gig workers.

As the nature of work continues to rapidly evolve and “gig workers” represent a rapidly growing percentage of the U.S. workforce, organizations such as the Aspen Institute are advocating for revised legislation that supports these new styles of work.

Implications for Workforce Planning

Today’s federal and state regulations rigidly define workers as “employees (W-2)” or “non-employees (1099)” and access to benefits is determined by this classification. As non-traditional work structures continue to gain prominence, companies and institutions competing for highly sought-after quality talent are limited in the benefits that can be offered without running the risk of worker misclassification claims. Today, numerous and often contradictory State and Federal classification criteria make classification difficult. While the Philadelphia legislation has merit, it adds to an already complex situation, and penalties for mistakes can be severe. To learn more about ways nextSource can assist you in establishing a balance between worker incentives and proper classification, contact us at marketing@nextsource.com