Labor and employment, independent contractors, establishment of portable benefit accounts.

HB 142 clarifies the legal status of independent contractors in Alabama. It specifies that certain aspects of the relationship cannot be used to establish an employment relationship, particularly for imposing liability under the Alabama Workers' Compensation Act. The bill also introduces new tax deductions, effective December 31, 2025, for both hiring parties and qualifying independent contractors. Hiring parties may deduct contributions made to portable benefit accounts for independent contractors, and independent contractors may deduct these contributions as business expenses.