MO HB1642

Requires the Missouri Department of Labor and Industrial Relations to promulgate rules defining independent contractors and procedures for reclassifying workers from independent contractor to employee status.

Establishes presumption that payments to LLCs, corporations, state-licensed individuals serving multiple customers, and licensed attorneys are payments to independent contractors, not employees.

Allows employers to request opinion letters from the department on worker classification and shields them from fines or additional taxes if they follow the department's recommendation.

Requires the department to provide employers 60 days to comply with reclassification findings without liability for back taxes, interest, or fines absent fraud; tolls fines and interest during appeals.

Halts all pending employee reclassification investigations immediately and gives employers 180 days to comply with new department classification definitions after public comment period ends.

Allows taxpayers with federal Section 530 relief from employment taxes to classify individuals as independent contractors for Missouri employment taxes as well.