MI HB4322

Prohibits employers from misclassifying employees as independent contractors, placing the burden of proof on the alleged violator to demonstrate proper classification

Establishes a three-part test for independent contractor status requiring the worker be free from payer control, perform work outside the payer's usual business, and be engaged in an independently established trade or business

Increases penalties for wage violations, raising the annual penalty rate from 10% to 100% on unpaid wages, maximum exemplary damages from twice to 3 times the amount owed, and maximum civil fines from $1,000 to $10,000

Creates the wages and fringe benefits fund in the state treasury to receive collected penalties, with 50% of misclassification penalties paid to affected employees

Expands enforcement authority by allowing the attorney general to initiate civil actions alongside the department director and requiring notification of misclassification violations to the Department of Treasury and unemployment insurance agency