2014 Employee Classification Legislation

12/12/2014

Employee Classification Legislation | 2014 Year End Summary

Legislation regarding classification of workers as employees or independent contractors was introduced in 23 states during the 2014 legislative session. Eleven states passed a total of 15 bills. Below are summaries of the enacted bills.

CALIFORNIA

CA A 360
Sponsor: Alejo (D)
Title: Workers' Compensation: Independent Contractors
Summary: Makes technical, nonsubstantive changes to existing law which defines an independent contractor for purposes of workers' compensation law. Status: 02/03/2014 Died at Desk.

CA A 1243
Sponsor: Hueso (D)
Title: Employment: Taxi Drivers
Summary: Establishes a presumption, rebuttable by clear and convincing evidence, that the driver of a taxicab is an independent contractor rather than an employee of a taxi company. Specifies the factors used in rebutting the presumption and the factors that may not be considered as evidence of employer-like control by a taxi company. Status: 03/11/2013 To Assembly Committee on Labor and Employment.

DELAWARE

DE H 55
Sponsor: Short B (D)
Title: Security For Franchised Distributors
Summary: Clarifies that parties to a franchise agreement are not within the definition of an employee under the Wage Payment and Collection Act of the state. Status: 06/06/2013 Signed by Governor. Chapter Number 39.

FLORIDA

FL H 1179
Sponsor: Stone (R)
Title: Home Health Care
Summary: Relates to home health care; exempts certain home health care agencies from licensure requirements; provides a registry for certified nursing assistants and home health aides; provides that registered nurses, licensed practical nurses, certified nursing assistants, companions, homemakers and home health aides are independent contractors and not employees of the registries that referred them and is not responsible for monitoring and training; requires recordkeeping; exempts Medicare and Medicaid agencies. Status: 06/13/2014 Signed by Governor. Filed as Chapter No. 2014-142.

FL S 976
Sponsor: Bean (R)
Title: Nurse Registries
Summary: Exempts home health agencies that are not Medicare or Medicaid certified and do not provide skilled care from specified licensure requirements; provides that registered nurses, licensed practical nurses, certified nursing assistants, and home health aides are independent contractors and not employees of the nurse registries that referred them; provides nurse registries are not obligated to monitor, supervise, manage or train caregivers they have referred; requires patient notification. Status: 04/28/2014 In Senate. Laid on table, refer to H1179.

GEORGIA

GA H 606
Sponsor: Knight (R)
Title: Private Home Care Providers
Summary: Relates to private home care providers, revise the definition of private home care provider to exclude from the definition contractual arrangements with independent contractors; changes certain provisions concerning certain employees; revises exempt services; provides for related matters; repeals conflicting laws. Status: 03/20/2013 In House: Read 2nd time.

ILLINOIS

IL H 4733
Sponsor: Mautino (D)
Title: Unemployment Insurance Act
Summary: Provides that provisions of the Unemployment Insurance Act concerning services performed delivering newspapers or shopping news, and not provisions concerning independent contractors, control the determination of employment status for services performed by individuals in the delivery or distribution of shopping news. Status: 07/01/2014 Rule 3-9(b) / Re-referred to Assignments Committee.

IL S 1660
Sponsor: Forby (D)
Title: Workers Compensation Act
Summary: Amends the Workers' Compensation Act and the Unemployment Insurance Act; sets forth the conditions under which a person who operates a motor vehicle for a carrier of property is an independent contractor and not an employee. Status: 02/13/2013 To Senate Committee on Assignments.

IL S 1661
Sponsor: Forby (D)
Title: Workers Compensation Act
Summary: Amends the Workers' Compensation Act and the Unemployment Insurance Act; provides that individuals who own or hold under a bona fide lease a motor vehicle that the individual then leases to a motor carrier and operates under a written agreement with the motor carrier that specifies that the arrangement involves an independent contractor relationship are not covered by the acts. Status: 02/13/2013 To Senate Committee on Assignments.

IOWA

IA H 129
Sponsor: Thomas (D)
Title: Employee Stock Ownership Plans
Summary: Relates to employee stock ownership plans by making an appropriation of $1 million for FY 2014 to the economic development authority for the purpose of providing financial assistance, including the establishment of a loan program, and technical assistance, marketing, and education to businesses regarding the formation of employee stock ownership plans and for the purpose of hiring an independent contractor with expertise in the formation of employee stock ownership plans. Status: 03/05/2013 In House Committee on Economic Growth.

IA S 2307
Sponsor: Transportation Committee
Title: Transportation of Railroad Workers
Summary: Contains provisions relating to companies that operate motor vehicles and employ drivers for the transportation of railroad workers; provides that the term employer means a railroad worker transportation company; provides that the term employee refers to a driver who performs a service for a railroad worker transportation company, either for wages or as an independent contractor; requires an employer to provide for annual inspection of the employer's motor vehicles by a qualified person. Status: 03/13/2014 To Senate Committee on Transportation.

KENTUCKY

KY S 81
Sponsor: Schickel (R)
Title: Employee Misclassification
Summary: Relates to employee misclassification; defines contractor, person, prime contractor, secretary and subcontractor; requires the Labor Cabinet to be the determining authority in issues related to employee misclassification; establishes criteria for determining whether a person is an independent contractor, exempting a prime contractor for a subcontractor's misclassification of an employee and exempting independent contractors from certain benefits. Status: 03/27/2014 Passed House. To Senate for concurrence.

KY S 105
Sponsor: Buford (R)
Title: Newspaper Carriers
Summary: Deletes newspaper carriers from being considered employees of independent news agencies for workers' compensation purposes. Status: 04/02/2014 Signed by Governor. Act No. 23.

LOUISIANA

LA H 716
Sponsor: Henry (R)
Title: Public Contracts
Summary: Establishes protections for certain independent public contractors who report criminal activity on the part of public entities. Status: 04/21/2014 Substituted by H. 1269.

MAINE

ME H 290
Sponsor: Russell (D)
Title: Wage Laws
Summary: Defines employee, employer and independent contractor for the purposes of the wages and medium of payment provisions of the labor laws in order to prevent misclassification of employees and their exclusion from wage law protection. It strengthens notification and reporting requirements. The bill includes shareholders' liability to protect employees who are hired by corporations that use bankruptcy law to evade payment. Status: 03/12/2013 In Senate. Placed in Legislative File (Dead).

MASSACHUSETTS

MA H 1695
Sponsor: Benson (D)
Title: Definition of Freelance Employees
Summary: Relates to the definition of an employee. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA H 1711
Sponsor: Decker (D)
Title: Independent Contractor Labor Laws
Summary: Regards independent contractors; relates to freelancers and artists. Status: 06/16/2014 In House. Placed on the Orders of the Day.

MA H 1738
Sponsor: Keenan J (D)
Title: Intellectual Property
Summary: Relates to intellectual property; provides an exception to requirements if the person identifies, markets, or promotes themselves as a freelancer, as self-employed, as a sole proprietor or as an independent business and controls the use of the intellectual property. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA H 1778
Sponsor: Walz (D)
Title: Labor Laws of Independent Contractors
Summary: Relates to labor Laws governing certain independent contractors. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA H 3164
Sponsor: Wagner (D)
Title: Trucking and Messenger and Courier Industries
Summary: Relates to the trucking and messenger or courier industries; provides that an operator of a car, van, truck, tractor, or truck-tractor that is licensed and registered by a governmental motor vehicle agency is an employee unless certain factors are present, and if such factors are present, the operator is an independent contractor. Status: 09/02/2014 From Joint Committee on Transportation: Accompanied Study Order H 4443.

MA H 3313
Sponsor: O'Connell (R)
Title: Independent Contractor Registration
Summary: Relates to allowing voluntary registration of independent contractors. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA H 3354
Sponsor: Cusack (D)
Title: Contractor Labor and Service Accountability
Summary: Relates to accountability in labor and services provided by contractors and subcontractors in the Commonwealth; provides for a special commission; relates to violations of workplace laws; includes multi-tiered supply chains and temporary staffing in labor-intensive industries such as retail, construction, building services, hospitality, ports, and health care; relates to use and misuse of contractors and subcontractors. Status: 03/27/2014 To House Committee on Ways and Means.

MA S 150
Sponsor: Tarr (R)
Title: Independence of Franchise Operators
Summary: Recognizes the independence of franchise operators; provides that a party to a franchise agreement which licenses or authorizes the individual to sell products or services in accordance with prescribed methods and procedures and under service marks, trademarks, trade names and other intellectual property licensed under such agreement shall not be considered an employee of the person or entity that grants the license or authorization. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA S 873
Sponsor: Moore M (D)
Title: Private Construction Contracts
Summary: Promotes fairness in private construction contracts; relates to a project by an agency, executive office, department, board, commission, bureau, division, municipality or subdivision; requires the weekly submission to the awarding authority by certified mail by electronic mail, certified payroll records accompanied by a statement Signed by the employer that indicates the records are correct and the rate of wages paid for the work of a mechanic, apprentice, teamsters, chauffeurs, and laborers. Status: 03/26/2014 Signed by Governor. Chapter No. 58-2014.

MA S 886
Sponsor: Rodrigues (D)
Title: Independent Contractors
Summary: Relates to certain independent contractors under the labor laws. Status: 09/04/2014 From Joint Committee on Labor and Workforce Development: Accompanied Study Order H 4446.

MA S 2195
Sponsor: Report of Conference Committee
Title: Workforce and Unemployment Insurance Reform
Summary: Establishes the Council on the Underground Economy; includes identification of industries where tax evasion or fraud, misclassification of employees, wage theft or the unreported payment of wages are most prevalent. Status: 06/26/2014 Signed by Governor. Chapter No. 144-2014.

MA SD 1923
Sponsor: office of the Attorney General
Title: Independent Contractor Study Appointments
Summary: Submits a communication from the Attorney General submitting notice of her designated appointment to the Special Commission to conduct an investigation and study of the definition of independent contractors. Status: 02/12/2014 Filed.

MICHIGAN

MI H 5874
Sponsor: Abed (D)
Title: Corporate Income Tax
Summary: Creates corporate income tax credit for certain taxpayers that provide employment to unemployed individuals; relates to independent contractors; includes self-insurers for worker's compensation. Status: 10/01/2014 To House Committee on Tax Policy.

MI S 1
Sponsor: Richardville (R)
Title: Employee Misclassifications
Summary: Provides for protections regarding employee misclassification through new Employee Classification Act. Status: 01/16/2013 To Senate Committee on Government Operations and Reform.

MINNESOTA

MN H 2198
Sponsor: Nelson M (DFL)
Title: Labor and Industry
Summary: Relates to labor and industry; makes permanent an independent contractor registration pilot project. Status: 04/30/2014 Indefinitely postponed. See S.B. 2065.

MN S 2065
Sponsor: Schmit (DFL)
Title: Labor and Industry
Summary: Relates to labor and industry; extends an independent contractor registration pilot project. Status: 05/21/2014 Signed by Governor. Filed with Secretary of State. Chapter No. 305.

NEW HAMPSHIRE

NH H 1349
Sponsor: Murphy Kei (R)
Title: Definition of Independent Contractor
Summary: Relates to the definition of employee for purposes of workers' compensation; exempts any employer from certain interest or late fees provided that such interest or late filing fees are due to an employer's failure to report the services of the individual and that the employer relies in good faith on a written determination of the Department of Labor that an individual is not an employee. Status: 05/14/2014 House refused to concur in Senate amendments.

NH H 1355
Sponsor: St. James (R)
Title: Unemployment Compensation for Self Employed Individuals
Summary: Permits a corporation to exclude the wages of certain individuals from the wages it reports to the Department of Employment Security. Status: 10/31/2014 In House: Interim Study Report - Not recommended for future legislation.

NH H 1439
Sponsor: Wallner (D)
Title: Investigating Combinations and Monopolies
Summary: Authorizes the Attorney General to engage the services of consultants, experts, accountants, economists, analysts, and other assistants in investigating combinations and monopolies. Status: 05/27/2014 Signed by Governor. Chapter No. 2014-64.

NEW JERSEY

NJ A 2860
Sponsor: Wisniewski (D)
Title: Truck Operator Independent Contractor Act
Summary: Establishes Truck Operator Independent Contractor Act. Status: 03/10/2014 To Assembly Committee on Labor.

NJ S 992
Sponsor: Weinberg (D)
Title: Truck Operator Independent Contractor Act
Summary: Establishes Truck Operator Independent Contractor Act. Status: 01/27/2014 To Senate Committee on Labor.

NEW YORK

NY A 224
Sponsor: Kavanagh (D)
Title: Bicycle Operators
Summary: Provides that bicycle operators and the businesses working as an independent contractor with such operators shall be liable for such operator's violation of the law; provides that any business using a bicycle for commercial purposes shall be vicariously liable for any civil penalty imposed on any bicycle operator employed by or otherwise working as an independent contractor with such business; adds to definition for the term bicycle including any wheeled motor-assisted device. Status: 01/08/2014 To Assembly Committee on Cities.

NY A 1865
Sponsor: Schimel (D)
Title: Independent Contractors Definition
Summary: Requires the state to defend and indemnify independent contractors and their employees when they install temporary traffic controls at accident scenes and other unplanned incidents; defines employee as an independent contractor and its employees who install temporary traffic controls at the scene of an accident, hazardous material spill or other unplanned traffic incident, while acting pursuant to a direct order by a police officer or other public official that is in charge of such traffic incident. Status: 01/08/2014 To Assembly Committee on Governmental Operations.

NY A 4688
Sponsor: Perry (D)
Title: Right of Action for Contractor Whose Bid is Denied
Summary: Creates a right of action in favor of a contractor whose bid is denied against the winning bidder where such winning bidder knowingly misclassified one or more of its employees as independent contractors to avoid paying workers' compensation premiums on such employee; provides for payment of damages by the winning bidder. Status: 01/08/2014 To Assembly Committee on Labor.

NY A 5263
Sponsor: Wright (D)
Title: Definition of Employment for Professional Models
Summary: Amends the Workers' Compensation Law; relates to the definition of employment as it concerns professional models and the individuals or entities which engage them; defines under what circumstances a model would be considered an independent contractor. Status: 01/08/2014 To Assembly Committee on Labor.

NY A 5472
Sponsor: Silver (D)
Title: Payment of Independent Contractors
Summary: Relates to payment of independent contractors; requires payment of compensation earned in accordance with agreed work terms; requires that such terms be reduced in writing and kept on file; provides for the filing of complaints, for legal actions and for actions for recovery; provides that such provisions do not apply to real estate brokers, associate brokers or salespersons licensed pursuant to the Real Property Law, work performed on one or two family dwellings, or construction contractors or projects. Status: 06/10/2014 To Senate Committee on Labor.

NY S 231
Sponsor: Squadron (D)
Title: Payment of Independent Contractors
Summary: Amends the labor law, in relation to independent contractors; provides for complaints regarding payment of independent contractors. Status: 01/08/2014 To Senate Committee on Labor.

NY S 232
Sponsor: Squadron (D)
Title: Payment of Independent Contractors
Summary: Relates to payment of independent contractors hired by clients and the filing of complaints. Status: 01/08/2014 To Senate Committee on Labor.

NY S 2556
Sponsor: Golden (R)
Title: Payment of Independent Contractors
Summary: Relates to payment of independent contractors and authorizes the department of labor to investigate complaints, make claims for compensation, assess liquid damages, civil penalties and criminal penalties; authorizes the award of attorney fees and liquidated damages; excludes construction contractors. Status: 01/08/2014 To Senate Committee on Labor.

NY S 3461
Sponsor: Krueger (D)
Title: Bicycle Operators for Commercial Purposes
Summary: Relates to the use of bicycles for commercial purposes; defines bicycle operator; provides such bicycle operator begins and ends riding a bicycle on behalf of such business whether as an employee or independent contractor; provides for an affirmative defense related to direct compensation to a bicycle operator providing delivery services; provides for wheeled motor-assisted device which a person or persons may ride that is not capable of being registered by the state department of motor vehicles. Status: 05/06/2014 From Senate Committee on Cities.

NY S 5445
Sponsor: Marcellino (R)
Title: Independent Contractors
Summary: Amends the Public officers Law; defines certain independent contractors who install temporary traffic controls as employees for purposes of defense and indemnification. Status: 01/08/2014 To Senate Committee on Finance.

NY S 5867
Sponsor: Savino (D)
Title: Commercial Goods Transportation Industry Fair Play Act
Summary: Amends the State Labor Law by enacting the New York State Commercial Goods Transportation Industry Fair Play Act; provides that any person performing commercial goods transportation services for such a contractor is an employee unless the person is a separate business entity that meets specified criteria, in which case the person shall be an independent contractor; updates the term employee in the State Workers' Compensation Law to include a person providing such services. Status: 01/10/2014 Signed by Governor. Chapter No. 558.

PENNSYLVANIA

PA S 1454
Sponsor: Stack (D)
Title: Construction Worker Misclassification
Summary: Amends the Construction Workplace Misclassification Act; relates to improper classification of employees, criminal penalties, administrative penalties, stop-work orders, procedure, prohibited agreements, availability of information, use of penalty funds, annual report required and funding; provides for prosecution by the Attorney General, penalty payments and civil penalties. Status: 07/10/2014 To Senate Committee on Labor and Industry.

RHODE ISLAND

RI H 7277
Sponsor: Ucci (D)
Title: Labor and Labor Relations
Summary: Grants jurisdiction to the workers' compensation court to decide whether an individual is an employee or an independent contractor in a number of various labor contexts. Status: 04/15/2014 Withdrawn at Sponsor's request.

RI S 2394
Sponsor: Gallo (D)
Title: Labor and Labor Relations
Summary: Adjusts a test for determining whether a worker is an employee and independent contractor; exempts from the definition of employment services performed by members of an AmeriCorps' program and newspaper carriers. Status: 05/14/2014 In Senate Committee on Labor: Committee recommends measure to be held for further study.

RI S 2409
Sponsor: McCaffrey (D)
Title: Workers' Compensation Court
Summary: Grants jurisdiction to the workers' compensation court to decide whether an individual is an employee or an independent contractor. Status: 05/14/2014 In Senate Committee on Labor: Committee recommends measure to be held for further study.

SOUTH CAROLINA

SC H 4950
Sponsor: Atwater (R)
Title: Unemployment Benefits
Summary: Relates to exemptions from the definition of employment for unemployment benefit purposes; provides an exemption for certain motor carriers that use independent contractors. Status: 03/20/2014 To House Committee on Labor, Commerce and Industry.

SC H 5221
Sponsor: Neal Jo (D)
Title: Fraudulent Misclassification of Workers Protection Act
Summary: Enacts the Fraudulent Misclassification of Workers Protection Act; prohibits the fraudulent misclassification of workers; relates to unemployment compensation and worker's compensation; creates a private cause of action, penalties and remedies; prohibits retaliatory conduct by an employer. Status: 05/07/2014 To House Committee on Judiciary.

SC S 1099
Sponsor: Sheheen (D)
Title: Exemptions from the Definition of Employment
Summary: Relates to exemptions from definitions of employment for unemployment benefit purposes; provides an exemption for motor carriers that utilize independent contractors who perform services as drivers. Status: 06/06/2014 Signed by Governor. Act No. 265.

TENNESSEE

TN H 1441
Sponsor: McCormick (R)
Title: Workers Compensation
Summary: Relates to Workers Compensation; allows the Administrator of the Division of Workers' Compensation to withdraw funds from the employee misclassification education and enforcement fund to provide benefits available through the uninsured employers fund. Status: 04/24/2014 Signed by Governor. Public Chaptered. Chapter No. 765.

TN S 1539
Sponsor: Bell (R)
Title: Sunset Laws
Summary: Relates to Sunset Laws; terminates the Employee Misclassification Advisory Task Force. Status: 03/06/2014 Signed by Governor. Public Chaptered. Chapter No. 512.

TN S 2251
Sponsor: Massey (R)
Title: Workers Compensation
Summary: Relates to Workers Compensation; revises provisions regarding the contractual relationship between a common carrier and a leased operator or leased owner/operator. Status: 04/04/2014 Signed by Governor. Public Chaptered. Chapter No. 633.

VERMONT

VT H 646
Sponsor: Botzow (D)
Title: Unemployment Insurance
Summary: Relates to unemployment insurance to include the investigation of complaints of unpaid wages, penalties for quarterly wage reporting and misclassification of employees. Status: 06/05/2014 Signed by Governor. Act No. 0173.

VT S 220
Sponsor: Mullin (R)
Title: Workers' Compensation Law
Summary: Relates to amending the workers' compensation law, establishing a registry of sole contractors, increasing the funds available to the department of tourism and marketing for advertising, and regulating legacy insurance transfers. Status: 06/24/2014 Signed by Governor. Act No. 0199.

WASHINGTON

WA H 1440
Sponsor: McCoy (D)
Title: Fairness to Employers by Protecting Employees
Summary: Creates a new test to determine whether an individual is an independent contractor for purposes of the new Employee Fair Classification Act, the Minimum Wage Act, the Wage Payment Act, and laws on prevailing wage, wage deductions, industrial insurance, and unemployment compensation; prohibits retaliation. Status: 01/13/2014 To House Committee on Labor and Workforce Development.

WA H 1659
Sponsor: Sells (D)
Title: Independent Contractors
Summary: Clarifies the employment status of independent contractors in the news business. Status: 02/05/2014 To House Committee on Appropriations.

WA H 2258
Sponsor: Buys (R)
Title: Independent Contractor Tests
Summary: Simplifies and provides clarity to independent contractor tests for the construction industry. Status: 01/21/2014 Public hearing scheduled.

WA H 2691
Sponsor: Kirby (D)
Title: Legal Service Contractors
Summary: Regulates legal service contractors. Status: 03/13/2014 By order of Resolution - Returned to House for Third Reading.

WA S 5476
Sponsor: Hewitt (R)
Title: Employment Status of Independent Contractors
Summary: Provides that the exclusions from unemployment insurance, industrial insurance, and the minimum wage for certain newspaper services are modified and made consistent; provides that newspaper vendors, carriers, or delivery persons selling or distributing newspapers on the street, to offices, to businesses, or from house to house are excluded; excludes any freelance news correspondence or stringer who, using their own equipment, submits material for free or a fee when the material is published. Status: 05/03/2013 Signed by Governor. Chapter No. 141.

WA S 5526
Sponsor: Conway (D)
Title: Employee Protection
Summary: Finds that improving compliance with wage-related laws will help address the problems of the underground economy, level the playing field for honest employers and contractors, and protect workers; establishes the Employee Fair Classification Act; creates the Employee Fair Classification Act Account. Status: 01/13/2014 2014 Regular Session Action: By Order of Resolution - Reintroduced and retained in present status.

WA S 5729
Sponsor: Braun (R)
Title: Real Estate Brokers Licensed
Summary: Clarifies that real estate brokers licensed under chapter 18.85 RCW are independent contractors. Status: 01/13/2014 2014 Regular Session Action: By Order of Resolution - Reintroduced and retained in present status.

WISCONSIN

WI A 358
Sponsor: Severson (R)
Title: Independent Contractors
Summary: Relates to exclusion of certain independent contractors from coverage under the worker's compensation law and the unemployment insurance law. Status: 04/08/2014 Failed to pass pursuant to Senate Joint Resolution 1.

WI S 276
Sponsor: Harsdorf (R)
Title: Independent Contractors
Summary: Relates to exclusion of certain independent contractors from coverage under the worker's compensation law and the unemployment insurance law. Status: 04/08/2014 Failed to pass pursuant to Senate Joint Resolution 1.

WYOMING

WY H 16
Sponsor: Joint Interim Corporations, Elections
Title: Misclassification of Employees - Penalties
Summary: Relates to workers' compensation and unemployment; clarifies penalties for misclassification of employees. Status: 02/10/2014 Withdrawn from further consideration.

WY S 96
Sponsor: Scott (R)
Title: Labor and Employment
Summary: Relates to labor and employment; amends the definition of independent contractor for purposes of unemployment compensation and workers' compensation. Status: 03/03/2014 Indefinitely postponed.

Source: StateNet bill tracking database search, 11-17-14.