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NC H482
Bill
Status
8/12/2015
Primary Sponsor
Gary Pendleton
Click for details
AI Summary
HB 482 - Employee Fair Classification Act
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Establishes the Employee Classification Division within the Department of Revenue to receive reports of employee misclassification, investigate violations, and assess civil penalties up to $1,000 per misclassified employee for repeat offenders.
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Creates the Employee Fair Classification Act defining employee misclassification as avoiding tax and employment obligations by falsely classifying employees as independent contractors, with determination based on eight-factor test codifying prior case law.
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Implements a temporary amnesty program allowing employers to voluntarily self-report misclassification by October 1, 2016 without civil penalties, though they remain liable for back taxes, wages, and benefits.
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Requires state occupational licensing boards and city/county officials to include employee misclassification notices on applications and mandate applicants certify understanding of misclassification rules; makes employee misclassification grounds for license revocation.
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Removes presumption that newspaper and magazine delivery/sales personnel are independent contractors, making them employees eligible for unemployment insurance and workers' compensation coverage.
Legislative Description
Employee Misclassification Reform
Last Action
Re-ref Com On Rules, Calendar, and Operations of the House
9/29/2015