Independent Contractor Compliance and Misclassification Legal Blog

Publishers’ Note:  Federal and State legislative initiatives to curtail misclassification of Independent Contractors began in the second half of 2007.  as noted in an early article on the topic co-authored by one of the publishers.  The following sets forth federal bills proposed as well as state laws enacted since that date, as well as selected bills recently proposed by state legislatures.  There have been no federal laws enacted since that date due to an absence of Congressional consensus.  See related blog post published on Nov. 26, 2012.

Federal Bills Proposed Since July 2007

• Independent Contractor Tax Fairness and Simplification Act of 2012 (H.R. 6653)
• Fair Playing Field Act of 2012 (H.R. 4123)
• Employee Misclassification Prevention Act of 2011 (H.R. 3178)
• Payroll Fraud Prevention Act of 2011 (S. 770)
• Fair Playing Field Act of 2010 (H.R. 6128)
• Employee Misclassification Prevention Act of 2010 and 2008 (S. 3254) and (H.R. 5107)
• Independent Contractor Proper Classification Act of 2007 (S. 2044)

State Laws Enacted Since July 2007

• AZ: Act Defining “Indications of Control” (H.B.2150) (enacted 3/29/12)
• CA: Independent Contractor Willful Misclassification Law (S.B.459) (enacted 10/9/11)
• CO: Misclassification of Employees as Independent Contractors Law for Purposes of the Colorado Employment Security Act (H.B. 09-1310) (enacted 6/09)
• CT: Act Concerning Employee Misclassification (S.B. 454) (eff. 7/1/08)
• CT: Act Implementing the Recommendations of the Joint Enforcement Commission on Employee Misclassification (H.B. 5204) (enacted May 5, 2010)
• DE: Workplace Fraud Act (Title 19, Section 3501 et seq.) (enacted 7/31/09)
• FL: Act Defining the Term “Independent Contractor” (H.B. 311) (enacted 5/4/11)
• IL: Employee Classification Act (820 ILCS 185) (eff.1/1/08)
• IN: Independent Contractor Information Sharing Law (S.B. 0478) (eff. 7/1/09)
• KS: Misclassification of Employees to Avoid Tax Withholding, Contributions and Reporting Requirements (H.B. 2135) (enacted May 12, 2011)
• LA: Act Providing Graduated Penalties for Misclassification (S.B. 472) (eff. 8/1/12)
• MA: Independent Contractor Misclassification Law (enacted 1990, as amended 1992, 1993, 1998, 2004)
• MD: Workplace Fraud Act of 2009 (S.B. 909) (enacted May 7, 2009)
• MD: Amendments to Workplace Fraud Act (S.B. 272) (enacted 5/2/12)
• ME: Act to Ensure that Construction Workers are Protected by Workers’ Compensation (LD 1456, HP1008) (eff. 1/1/10)
• ME: Independent Contractor Status of Truckers and Couriers (LD 1099, SP 332) (eff. 5/31/11)
• ME: Uniform Definition of Independent Contractor for Unemployment Purposes (LD1420, HP437) (eff. 6/10/11)
• MN: Act Clarifying Definition of Independent Contractor and Creating Pilot Project for Construction Contractors (S.F. 1653) (enacted 5/14/12)
• MN: Independent Contractor Law (MN Stat. 181.723) (eff. 7/1/08)
• NE: Employee Classification Act (for Construction and Delivery Services) (LB 563) (eff. 7/15/10)
• NH: Act Relative to the Definition of Employee (S.B. 92) (eff. 1/1/08)
• NJ: Construction Industry Independent Contractor Act (N.J.S.A. 34:20-1 et seq.) (enacted 7/13/07)
• NY: Construction Industry Fair Play Act (S 5847C) (A 8237A) (enacted 8/27/10)
• PA: Construction Workplace Misclassification Act (H 400) (enacted 10/13/10; eff. 2/10/11)
• RI: Suspected Misclassification Information Sharing Law (H 7564) (enacted 6/25/12; eff. 6/25/12)
• UT: Independent Contractor Database Act (S.B. 189) (2008)
• UT: Amendments to Workers Compensation Laws Regarding Independent Contractor Misclassification (S.B. 159) (2008)
• UT: Worker Classification Coordinated Enforcement (S.B. 11) (enacted 3/7/11)
• UT: Construction Licensees Related Amendments (S.B. 35) (enacted 3/30/11)
• VT: Act Related to Misclassification of Employees to Lower Premiums for Workers’ Compensation and Unemployment Compensation ( H. 647) (eff. 7/1/10)
• WA: Determination of Independent Contractor Status Law (H.B. 1701) (eff. 6/12/08)
• WI: Worker Classification Compliance Law (S.B. 672) (eff. 1/1/11)

Selected Bills (as of 11/1/11)

• AR: Interagency Agreements to Address Misclassifying Employees as Independent Contractors (HB 1839) (withdrawn)
• CT: Act Clarifying the Definition of Independent Contractor (SB 678)
• DC: Construction Services Industry Workplace Fraud Act of 2011 (B19-0169)
• IN:  Criminal Penalties for False Statements of Independent Contractor Status (S.B. 164)
• IA:  Willful Misclassification and Failure to Pay Unemployment Contributions (H.F. 551)
• LA: Construction Industry Workplace Fraud Prevention Act (H.B. 535)
• MI: Act to Amend Disability Compensation Act with respect to Misclassification of Employees in the Commercial Carrier and Construction Industries (H.B. 5962)
• MN: Act Relating to Providing Standard Definition of Independent Contractor for Truck Driver-Operators (H.F. No. 1794)
• NC:  Employee Fair Classification Act (H.B. 790)
• NV: Act Creating a Private Right of Action for an Employee Who Has Been Improperly Classified as an Independent Contractor (H.B. 148) (4/16/11 – no further action allowed)
• NY: Independent Contractor Amendments to Labor Law (A1073)
• OH: Uniform Definition of Employee Act (S.B. No. 107)
• RI: Public Works Law – Private Right of Action for Misclassification (2010 – S. 2375) (reportedly failed in R.I. Senate Committee on Labor on June 24, 2010)
• TX: Workplace Fraud Prevention Act (H.B. 2989)
• VA: Worker Misclassification Act (S.B. 34)
• VT:  Act Related to Independent Contractors (H.B. 425) (common definition for workers compensation and unemployment compensation insurance)
• WA: Concerning the Misclassification of Workers as Independent Contractors in the Construction Industry (H.B. 1701 & S.B. 599)

Bills Vetoed By Governors

• CA: California’s Independent Contractor Advisor Law (SB 1583) 
• NV: Nevada’s Administrative Penalty for Misclassification Act (SB 207)