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MI SB1237
Bill
Status
11/29/2018
Primary Sponsor
Michael Kowall
Click for details
AI Summary
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Establishes the "Employee Classification Act" to create uniform criteria for determining independent contractor versus employee status in Michigan.
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Defines an independent contractor as meeting one of three pathways: (1) a written agreement with acknowledgments about contractor status and tax obligations, (2) filing self-employment tax returns with the IRS, or (3) operating through a registered business entity.
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Requires four or more of nine specified conditions to be met for independent contractor status, including control over work manner, ability to work for multiple principals, right to hire others, and no exclusive work requirement (with limited exceptions for regulatory or licensing restrictions).
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Prohibits employers and their agents from misclassifying employees as independent contractors in state-required reports.
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Takes effect 90 days after enactment into law.
Legislative Description
Labor; fair employment practices; employee misclassification; establish uniform criteria. Creates new act.
Labor: fair employment practices
Last Action
Referred To Committee On Commerce
11/29/2018