SB 1323

Abstract

Worker classification; independent contractors. Provides that in a proceeding involving allegations of worker misclassification an individual or business is not considered an employee with respectto a hiring party if the person qualifies as an independent contractorrelative to the hiring party under the common law right-of controltest as established by the Internal Revenue Service Revenue Ruling87-41, by an applicable determination of the Internal Revenue Service,or if (i) the individual or business signs a written contract withthe hiring party stating that the individual or business is self-employedor is being engaged as an independent contractor and containing certainacknowledgments, (ii) the individual or business has the right tocontrol the manner and means by which the final result of the workis to be accomplished, and (iii) four or more additional criteriaprovided for in the bill are satisfied. The bill also provides thata hiring party alleging that a worker misclassification claim is frivolous or improper may file a motion to dismiss such claim. Thebill provides that a contract or written agreement expressly statingthat a claimant is not considered an employee is considered as primafacie evidence of a violation of frivolous pleading provisions.