Strengthens protections against employee misclassification and provides stronger enforcement.

Amends the wage and hour law to strengthen protections against employee misclassification and provide stronger enforcement. Redefines terms. Creates definition for "independent contractor" that requires workers to be free from the payer's control, performing work outside the payer's usual business, and engaged in an independently established trade. Prohibits employers from classifying employees as independent contractors, and places the burden of proof on employers to demonstrate proper classification. Increases penalties for misclassification, including potential fines up to $10,000, requiring employers to pay 100% annual penalties on unpaid wages. Allows for exemplary damages up to three times the amount of unpaid wages. Establishes a new Wages and Fringe Benefits Fund in the state treasury, through which collected penalties will be partially distributed to affected employees. Expands protections for workers who file complaints, making it illegal for employers to retaliate against employees who assert their rights under the act. Transfers regulatory oversight from the Department of Licensing and Regulatory Affairs to the Department of Labor and Economic Opportunity.

Pending Committee action.

04/16/2025 Introduced. Read first time. Referred to House Committee on Economic Competitiveness.