S 721 - Uniform Worker Classification Act

• Establishes uniform, objective standards for classifying workers as independent contractors or employees across all North Carolina state laws, superseding inconsistent standards previously applied across different statutes.

• Allows classification as independent contractor if worker meets any one of five conditions: signed written contract with required acknowledgments, filed self-employment tax returns, operates through business entity, controls manner and means of work, or satisfies three or more criteria related to control of time, location, exclusivity, and licensing.

• Requires all workers who do not meet independent contractor criteria to be classified as employees, though employers may voluntarily classify qualifying workers as employees.

• Preempts local governments from enacting ordinances or regulations that conflict with the classification standards, ensuring statewide uniformity.

• Takes effect July 1, 2023, and exempts employers under the Federal Unemployment Tax Act Section 3309.