HB 1407

Abstract

Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.

Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.

Misclassification of employees as independentcontractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individualas an independent contractor if he is an employee. An individualshall be considered an employee of the party that pays the remunerationfor purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation),60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation)unless and until it is shown to the satisfaction of the Departmentof Taxation that such individual is an independent contractor underInternal Revenue Service guidelines. Violators are subject to civilpenalties and debarment from public contracts. The bill has a delayedeffective date of January 1, 2021.