A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.
Impact
The bill's enforcement will be overseen by the Department of Workforce Development, which is tasked with the administration and oversight of compliance measures. It introduces significant civil penalties for violations—ranging from $5,000 for a first offense to $10,000 for subsequent violations per misclassified individual. This financial deterrent is expected to encourage employers to adhere strictly to proper classification of workers to avoid mounting penalties.
Summary
House File 348 aims to combat the wrongful classification of workers by employers, specifically addressing the misclassification of employees as independent contractors. This practice can prevent these workers from accessing essential employment benefits and government programs. The bill stipulates that an employer shall not willfully misclassify an individual performing services for remuneration, aligning the classification criteria with federal IRS guidelines as they stand during an alleged misclassification incident. This law is expressly framed to enhance worker rights and ensure fair treatment in the workforce.
Contention
While the bill is generally supported as a means to protect workers, concerns have been raised about its implications for employers who may face increased scrutiny and potentially hefty fines. Opponents may argue that the definitions and enforcement mechanisms could be overly stringent or create undue administrative burdens. Proponents counter that the clear enforcement of employee status is vital for ensuring rights and benefits are not denied to those who are, in fact, employees, due to strategic misclassification by employers.
A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.
A bill for an act prohibiting employers and employment agencies from seeking the criminal record or criminal history from applicants for employment under certain circumstances, establishing a criminal history employment application task force, providing penalties, and including effective date provisions.
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A bill for an act relating to wage payment collection issues arising between employers and employees, providing penalties and remedies, and including effective date provisions.
A bill for an act prohibiting employers from entering into noncompete agreements with employees under specified circumstances, and including applicability provisions.
A bill for an act relating to workers' compensation benefits involving violations of occupational safety and health or child labor laws, providing penalties, and including applicability provisions.
A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.
Provides for penalties for employers who fail to withhold due to misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/21) (Item #24) (OR INCREASE GF RV See Note)
Provides for uniform definitions of independent contractor and employee, and for penalties for the misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/22) (OR INCREASE SG RV See Note)