MI SB0645

Establishes the "Employee Classification Act" to create uniform criteria for determining employer-employee relationships under Michigan law.

For most industries, uses the IRS 20-factor test from Revenue Ruling 87-41 to determine if an individual is an employee or independent contractor.

Provides alternative criteria for trucking and messenger courier industries: vehicle operators are employees unless all six conditions are met, including vehicle ownership, responsibility for operating costs, compensation based on work performed, and a signed independent contractor agreement.

Presumes an individual is an employee if the employer is required to withhold federal income tax from their compensation.

Prohibits employers from misclassifying employees in state-required reports and subjects violators to sanctions under the statute requiring the report if misclassification reduces legal obligations to the employee, others, or the state.