National Conference of State Legislatures Legislation on Employee Misclassification. As of February 14, 2011
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1 National Conference of State Legislatures 2011 Legislation on Employee Misclassification As of February 14, 2011 ARIZONA AZ H 2288 Dial (R) Airports and Security Screening Summary: Relates to airports; relates to private contractors; relates to security screening. 01/18/2011 Introduced. 01/20/2011 To House Committee on Transportation. 01/20/2011 Additionally referred to House Committee on Rules. ARKANSAS AR H 1324 Nickels (D) Employee Classification Act Summary: Creates the Employee Classification Act; addresses the practice of misclassifying employees as independent contractors for purposes of unemployment insurance. 02/07/2011 Introduced. 02/07/2011 To House Committee on Public Health, Welfare and Labor. AR H 1325 Nickels (D) Employee Classification Act Summary: Creates the Employee Classification Act; addresses the practice of misclassifying employees as independent contractors for purposes of worker's compensation; indirectly amends the workers' compensation law enacted by initiated act 4 of /07/2011 Introduced. 02/07/2011 To House Committee on Public Health, Welfare and Labor. CONNECTICUT CT S 678 Musto (D) Definition of Independent Contractor Summary: Clarifies the definition of independent contractor; clarifies the rule regarding when a person is an independent contractor or subcontractor as opposed to an employee. 01/21/2011 Introduced. 01/24/2011 To Joint Committee on Labor and Public Employees. FLORIDA FL H 311 Roberson K (R) Local Business Taxes Summary: Relates to local business taxes; provides a definition for the term independent contractor; exempts an individual engaging in or managing a business in an individual capacity as an employee from requirements related to local business taxes; specifies that an independent contractor is not employee; prohibits local governing 1
2 authority from holding an exempt employee liable for the failure of principal or employer to comply with certain obligations related to local business tax. 01/20/2011 Prefiled. 02/01/2011 To House Committee on Business and Consumer Affairs Subcommittee. 02/01/2011 Referred to House Committee on Finance and Tax. 02/01/2011 Referred to House Committee on Economic Affairs. HAWAII HI H 519 Yamashita (D) Workers Compensation Summary: Excludes services performed by an individual who is a member of a limited liability company or a partner of a limited liability partnership who has a distributional interest in the company or partnership of at least fifty per cent, a partner or a partnership, and a sole proprietor from the definition of employment under the workers' compensation law. 01/21/2011 Introduced. 01/24/2011 To House Committee on Economic Revitalization and Business. 01/24/2011 Additionally referred to House Committee on Labor and Public Employment. 01/26/2011 In Committee: Public Hearing Scheduled. 02/03/2011 In House Committee on Economic Revitalization and Business: Voted do pass. 02/03/2011 In House Committee on Labor and Public Employment: Voted do pass. ILLINOIS IL S 1851 Forby (D) Employee Classification Act Summary: Amends the Employee Classification Act; provides that the term employment does not include services performed by an individual as an operator of a truck, truck-tractor, or tractor if certain specified conditions are met; provides that an individual performing services for a contractor is deemed to be an employee of the employer, unless the contractor is a truck owner-operator as defined in the Act. 02/09/2011 Introduced. 02/09/2011 To Senate Committee on Assignments. INDIANA IN S 164 Mrvan (D) False Statements to State Agencies Summary: Relates to false statements to state agencies; provides that an employee who knowingly or intentionally makes a false statement of independent contractor status to the Department of State Revenue commits a Class D felony; provides that an employer or employee shall not classify an employee as an independent contractor for the sole or primary purpose of avoiding the worker's compensation law; provides that a violation is a Class A infraction; makes technical corrections. 01/03/2011 Prefiled. 01/05/2011 Introduced. 01/05/2011 To Senate Committee on Pensions and Labor. KANSAS KS H 2131 Summary: House Commerce and Economic Development Committee Employee Misclassification Concerns employment; relates to misclassification of employees. 2
3 01/31/2011 Introduced. 02/03/2011 To House Committee on Commerce and Labor. KS H 2135 House Commerce and Economic Development Committee Taxation Summary: Relates to taxation; relates to misclassification of employees to avoid tax withholding, contributions and reporting requirements. 01/31/2011 Introduced. 02/03/2011 To House Committee on Commerce and Labor. KS S 157 Senate Commerce Committee Employee Misclassification Summary: Concerns the enforcement of employee misclassification by the attorney general. 02/09/2011 Introduced. 02/10/2011 To Senate Committee on Commerce. MAINE ME LR 512 Thomas Independent Contractor Status Summary: Clarifies the status of independent contractors. 01/13/2011 Filed. ME LR 804 Tilton (R) Independent Contractor Definition Summary: Standardizes the definition of independent contractor. 01/13/2011 Filed. ME LR 955 Thomas Private Investigator Status Summary: Relates to the status of a private investigator as an independent contractor. 01/13/2011 Filed. 02/03/2011 Assigned Senate Paper number 95 and LD 315 ME LR 1409 Thomas Independent Trucking Contractors Summary: Concerns independent contractors in the trucking and messenger courier industries. 01/13/2011 Filed. ME S 95 Thomas D (R) Independent Contractors and Private Investigators Summary: Excepts a private investigator from the definition of "employment" in the Employment Security Law if there is a written contract between the parties; the private investigator operates independently; compensation for services is negotiated; and the party requesting services furnishes neither equipment nor the place of employment to the private investigator. 02/03/2011 Introduced. 02/03/2011 Filed as LR /08/2011 Senate refers to Joint Committee on Labor, Commerce, Research and Economic Development. 3
4 02/08/2011 House refers to Joint Committee on Labor, Commerce, Research and Economic Development in concurrence. MASSACHUSETTS MA HD 1128 Walz (D) Independent Contractors Summary: Relates to independent contractors. 01/19/2011 Filed. MA HD 1782 Barrows (R) Independent Contractors Summary: Relates to independent contractors. 01/20/2011 Filed. MA HD 3043 Kafka (D) Independent Contractors Summary: Relates to independent contractors. 01/21/2011 Filed. MISSISSIPPI MS S 2886 Bryan (D) Independent Contractors Summary: Limits the amount of compensation that may be paid by an agency to an independent contractor who is receiving a retirement allowance from the public employees' retirement system. 01/17/2011 Introduced. 01/17/2011 To Senate Committee on Finance. 02/01/2011 Died in committee. MONTANA MT D 200 Keane Workers Compensation Summary: Requires that certain corporate officers and managers of manager-managed limited liability companies working in the construction industry be covered by workers' compensation or obtain an independent contractor exemption certificate. 08/03/2010 Draft request received. 08/30/2010 Draft on Hold. 01/27/2011 Draft to requester for review. 01/28/2011 Draft to drafter - edit review. 01/28/2011 Draft in input/proofing. 01/28/2011 Filed. 01/31/2011 Draft in final draft review. 01/31/2011 Draft in Assembly/Executive Director review. 02/07/2011 Draft delivered to Requester. 02/08/2011 Assigned Senate Bill No MT D 1827 Summary: Brenden Renewal Fee for Independent Contractors Lowers renewal fee for independent contractors; relates to workers' compensation. 4
5 12/27/2010 Draft request received. 12/29/2010 Draft to requester for review. 01/13/2011 Draft on Hold. 01/18/2011 Draft in legal review. 01/19/2011 Draft in input/proofing. 01/19/2011 Filed. 01/20/2011 Draft in final draft review. 01/20/2011 Draft in Assembly/Executive Director review. 01/21/2011 Draft ready for delivery. 01/24/2011 Draft back for redo. 01/26/2011 Draft in final draft review. 01/31/2011 Assigned Senate Bill No MT H 84 Boland (D) Wage Collection Fund Summary: Revises the labor law; provides that the definition of an employee does not include an independent contractor with respect to general obligations of employers; provides that the deposit of wages into the wage collection fund by the commissioner of labor is discretionary rather than mandatory; updates the reference to federal law with respect to the definition of a person in an outside sales capacity. 12/13/2010 Prefiled. 12/13/2010 Filed as Draft /03/2011 Introduced. 01/03/2011 To House Committee on Business and Labor. 01/20/2011 From House Committee on Business and Labor: Do pass. 01/26/2011 Passed House. To Senate. 02/03/2011 To Senate Committee on Business, Labor and Economic Affairs. MT H 110 Welborn (R) Workers' Compensation Laws Summary: Revises workers' compensation laws; requires registered construction contractors to provide proof of workers' compensation insurance; requires workers' compensation insurers and agents to pay medical providers on a timely basis; clarifies the minimum wage for premium and benefit purposes by persons electing workers' compensation coverage; clarifies grounds on which an independent contractor exemption certificate may be revoked; clarifying that interest on a security deposit accrues to the insurer. 12/14/2010 Prefiled. 12/14/2010 Filed as Draft /03/2011 Introduced. 01/03/2011 To House Committee on Business and Labor. 01/27/2011 From House Committee on Business and Labor: Do pass as amended. 02/01/2011 Passed House. To Senate. 02/08/2011 To Senate Committee on Business, Labor and Economic Affairs. MT S 242 Brenden (R) Renewal Fee for Independent Contractors Summary: Lowers renewal fee for independent contractors; relates to workers' compensation; relates to state revenue. 01/31/2011 Introduced. 01/31/2011 Filed as Draft /31/2011 To Senate Committee on Business, Labor and Economic Affairs. 02/11/2011 From Senate Committee on Business, Labor and Economic Affairs: Do pass as amended. MT S 290 Zinke (R) 5
6 Human Rights Act and Independent Contractors Summary: Excludes independent contractor as employee under Human Rights Act; relates to discrimination and human rights; relates to workers' compensation; relates to rule making; relates to labor and employment. 02/09/2011 Introduced. 02/09/2011 Filed as Draft /09/2011 To Senate Committee on Business, Labor and Economic Affairs. NEW HAMPSHIRE NH H 420 Infantine (R) Registration for Independent Contractors Summary: Relates to voluntary registration for independent contractors under Workers' Compensation Law. 01/06/2011 Introduced. 01/06/2011 To House Committee on Labor, Industrial and Rehabilitative Services. 01/21/2011 Filed as LSR 748 NH LSR 748 Infantine (R) Independent Contractors and Workers Compensation Summary: Relates to independent contractors under workers' compensation. 12/07/2010 Filed. 01/21/2011 Assigned Bill Number: hb 420 NEVADA NV BDR 164 Legislative Commission's Subcommittee to Study Employee Misclassification Employee Misclassification Summary: Creates Task Force on Employee Misclassification. 07/21/2010 Filed. NV BDR 165 Legislative Commission's Subcommittee to Study Employee Misclassification Employer Civil Penalties Summary: Authorizes civil penalties against employers who misclassify employees as independent contractors. 07/21/2010 Filed. NV BDR 166 Legislative Commission's Subcommittee to Study Employee Misclassification Right Of Action Against Employer Summary: Creates a private right of action against employers for workers who are misclassified as independent contractors. 07/21/2010 Filed. NV BDR 167 Legislative Commission's Subcommittee to Study Employee Misclassification Civil Penalties Against Employers Summary: Authorizes civil penalties against anyone who knowingly advises an employer on how to misclassify employees as independent contractors. 07/21/2010 Filed. NV BDR 168 Legislative Commission's Subcommittee to Study Employee Misclassification Independent Contractor Definition 6
7 Summary: Amends definition of "independent contractor" for purposes of workers' compensation law. 07/21/2010 Filed. NEW YORK NY A 192 Cahill (D) Independent Contractors Summary: Includes certain independent contractors in the state directory of new hires to aid in the administration of the child support enforcement program. 12/28/2010 Prefiled. 12/28/2010 To Assembly Committee on Ways and Means. 01/05/2011 Introduced. 01/05/2011 To Assembly Committee on Ways and Means. NY A 1852 Wright (D) Definition of Employment Summary: Relates to the definition of employment as it concerns professional models and the individuals or entities which engage them; defines under what circumstances a model would be considered an independent contractor. 01/12/2011 Introduced. 01/12/2011 To Assembly Committee on Labor. NY A 2274 Reilly (D) Workers Compensation Law Summary: Amends the workers' compensation law definition of employee to exclude persons during a period of orientation or training when such persons are intending to become independent contractors. 01/14/2011 Introduced. 01/14/2011 To Assembly Committee on Labor. NY A 3258 Perry (D) Right of Action in Favor of a Contractor Summary: Creates a right of action in favor of a contractor whose bid is denied against the winning bidder where such winning bidder knowingly misclassified one or more of its employees as independent contractors to avoid paying workers' compensation premiums on such employee; provides for payment of damages by the winning bidder. 01/24/2011 Introduced. 01/24/2011 To Assembly Committee on Labor. NY A 4566 Schroeder (D) Department of Labor Summary: Directs the department of labor to prescribe the form of a notice informing potential contractors in public work contracts of their responsibilities relating to hours, wages and supplements; requires all contracting agencies to include such notice in the request for proposals for public work. 02/04/2011 Introduced. 02/04/2011 To Assembly Committee on Labor. NY S 21 Summary: Squadron (D) Payment of Independent Contractors Relates to claims for the payment of independent contractors. 7
8 12/02/2010 Prefiled. 12/02/2010 To Senate Committee on Labor. 01/05/2011 Introduced. 01/05/2011 To Senate Committee on Labor. NY S 630 Squadron (D) Payment of Independent Contractors Summary: Establishes certain requirements for the payment of independent contractors; requires work terms to be reduced in writing and signed by both the client and the contractor; provides for the investigation of controversies between clients and contractors; provides for the filing of complaints; provides for legal actions when a contractor is paid less than the compensation to which he or she is entitled. 12/28/2010 Prefiled. 12/28/2010 To Senate Committee on Labor. 01/05/2011 Introduced. 01/05/2011 To Senate Committee on Labor. NY S 3093 Robach (R) State Agency Consultant Contracts Summary: Relates to the cost effectiveness of consultant contracts by state agencies; defines "consultant services". 02/08/2011 Introduced. 02/08/2011 To Senate Committee on Finance. OREGON OR D 976 House Consumer Protection and Government Accountability Committee Review Processes for Employer Determinations Summary: Establishes review processes for certain employer determinations made by Department of Revenue and Employment Department based on finding that one or more workers are employees and not independent contractors; modifies laws relating to Interagency Compliance Network; eliminates references to network and substitutes references to specific agencies; declares emergency, effective on passage. 12/22/2010 Filed. 01/09/2011 Assigned House Bill No OR D 1040 House Consumer Protection and Government Accountability Committee Exemption of Meetings in Interagency Compliance Network Summary: Exempts meetings of Interagency Compliance Network and of member agencies for Interagency Compliance Network purposes from public meetings law. Declares emergency, effective on passage. 12/22/2010 Filed. 01/09/2011 Assigned House Bill No OR D 2873 Senate Committee on Business and Transportation Exclusion from the Definition of Employment Summary: Excludes from definition of "employment," for purposes of unemployment insurance benefits, service performed in operation of passenger motor vehicle operated as taxicab or for nonemergency medical transportation by person with ownership or leasehold interest in vehicle; declares emergency, effective on passage. 12/22/2010 Filed. 01/09/2011 Assigned Senate Bill No. 257 OR H 2157 Roblan (D) Landscape Contracting Businesses 8
9 Summary: Requires applicant for landscape contracting business license that is nonexempt independent contractor to provide workers' compensation insurance coverage for employees; requires applicant for landscape contracting business license that is exempt independent contractor and enters into contract with worker leasing company or temporary service provider to ensure that workers supplied to business by leasing company or service provider are covered by workers' compensation insurance. 01/10/2011 Introduced. 01/21/2011 To House Committee on Business and Labor. OR H 2313 Harker (D) Agency Determination of Independent Contractor Status Summary: Instructs Bureau of Labor and Industries to study development of definition of "independent contractor" by rule for purpose of determination of independent contractor status. 01/11/2011 Introduced. 01/21/2011 To House Committee on Business and Labor. OR H 2469 Roblan (D) Employment Summary: Establishes review processes for certain employer determinations made by Department of Revenue and Employment Department based on finding that one or more workers are employees and not independent contractors; modifies laws relating to Interagency Compliance Network; eliminates references to network and substitutes references to specific agencies; declares emergency, effective on passage. 01/11/2011 Introduced. 01/21/2011 To House Committee on Business and Labor. UTAH UT S 11 Mayne K (D) Worker Classification Coordinated Enforcement Summary: Changes the Independent Contractor Database Enforcement Council to the Worker Classification Coordinated Enforcement Council; addresses membership, the duties of the council, and the sharing of information. 12/20/2010 Prefiled. 01/24/2011 Introduced. 01/24/2011 To Senate Committee on Rules. 01/24/2011 From Senate Committee on Rules. To Senate Standing Committee. 01/24/2011 To Senate Committee on Business and Labor. 01/27/2011 Amended on Senate floor. 01/27/2011 Passed Senate. To House. 01/28/2011 To House Committee on Rules. 01/31/2011 From House Committee on Rules. To Standing Committee. 01/31/2011 To House Committee on Business and Labor. 02/03/2011 From House Committee on Business and Labor: Reported favorably. 02/09/2011 Passed House. 02/09/2011 Eligible for Governor s desk. VIRGINIA VA S 34 Lucas (D) Worker Misclassification Act Summary: Relates to worker Misclassification Act; penalties. 01/04/2010 Prefiled. 01/04/2010 To Senate Committee on Commerce and Labor. 9
10 01/13/2010 Introduced. 01/13/2010 To Senate Committee on Commerce and Labor. 02/01/2010 In Senate Committee on Commerce and Labor: Continued to /02/2010 Left in committee. VA S 377 Puckett (D) Workplace Fraud Act Summary: Relates to workplace Fraud Act. 01/13/2010 Introduced. 01/13/2010 To Senate Committee on Commerce and Labor. 02/01/2010 In Senate Committee on Commerce and Labor: Continued to /02/2010 Left in committee. VA SJR 345 Puckett (D) Misclassification of Employees as Independent Contract Summary: Requests the Department of Labor and Industry, with the technical assistance of the Board for Contractors within the Department of Professional and Occupational Regulation, to study the misclassification of employees as independent contractors in the Commonwealth; provides that in conducting the study, the Department shall review the status of employee misclassification in the state, review the consequences of misclassification to the workforce, determine the amount of lost revenue to the state and local. 01/12/2011 Introduced. 01/12/2011 To Senate Committee on Rules. 02/04/2011 From Senate Committee on Rules: Reported with substitute. 02/04/2011 Committee substitute printed. 02/08/2011 Committee substitute adopted on Senate floor. 02/08/2011 Engrossed by Senate as substituted. 02/08/2011 Passed Senate. To House. 02/09/2011 To House Committee on Rules. WASHINGTON WA H 1701 Ormsby (D) Misclassification of Contractors Summary: Concerns the misclassification of contractors as independent contractors in the construction industry. 01/28/2011 Introduced. 01/31/2011 To House Committee on Labor and Workforce Development. 02/11/2011 Public hearing scheduled. Source: StateNet, copyright Information for Public Affairs. February 14,
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