SB 486 Summary

• Adds definition of "independent contractor" requiring three conditions: individual is free from employer control, work is outside employer's usual business, and individual is customarily engaged in independently established trade.

• Creates new Section 13c prohibiting classification of employees as independent contractors, with burden of proof on employer to demonstrate compliance by preponderance of evidence.

• Establishes "wages and fringe benefits fund" within state treasury to receive deposits and be used solely for enforcing wage and hour laws under the act.

• Imposes penalties on employers violating the independent contractor misclassification law including 50% of collected penalties paid to affected employees and deposits of estimated federal taxes/Medicare payments into the wages and fringe benefits fund.

• Clarifies that Section 13 retaliation protections cover discharge, retaliation, and discrimination against employees filing complaints or testifying about wage violations.