Provides penalties and remedies for misclassification of independent contractors
Defines independent contractor as an individual who performs work for a payer for remuneration and to whom all of the following apply:
(i) The individual is free from control and direction of the payer in connection with the performance of the work, both under a
contract and in fact.
(ii) The individual performs work that is outside the usual course of the payer's business.
(iii) The individual is customarily engaged in an independently established trade, occupation, or business of the same work performed by the individual for the payer.
(g) "Payer" means a person who pays remuneration to an independent contractor for work the independent contractor performs for the payer.
Establishes that a person shall not classify, report, or treat an employee as an independent contractor. A person who is alleged to have violated this section has the burden of proving, by a preponderance of the evidence, that the person did not classify, report, or treat the employee as an independent contractor.
Creates the Wages and Fringe Benefits Fund in the state treasury.
Establishes that if the department collects a penalty or damages from an employer for violation, the department shall pay to the affected employee 50% of the money collected.
Orders an employer who violates to pay a penalty in an amount equal to the estimated federal taxes and Medicare payments that would have been due the employee if the employer. Money collected must be deposited into the
Wages and Fringe Benefits fund
Pending Committee action.
04/12/2023 Introduced. Read first time. Referred to House Committee on Labor.