ENGROSSED SENATE BILL 1937 - Summary

• Establishes the Oklahoma Employee Classification Act to address misclassification of employees as independent contractors in the construction industry.

• Defines a person as an employee unless they meet specific criteria including: freedom from control, services outside the contractor's usual business, or legitimate independent sole proprietor/partnership status with substantial capital investment.

• Requires entities employing non-employee contractors to post Department of Labor notices at job sites and offices summarizing act requirements.

• Establishes civil penalties up to $1,500 for first violations and up to $2,500 for repeat violations within five years, with violators potentially barred from state contracts for four years.

• Allows employees and interested parties to file complaints with the Department of Labor or sue in district court for wage recovery, liquidated damages up to $500 per violation, and attorney fees within three years of service termination.

• Takes effect November 1, 2010.