State News

Special Report: States Enact Legislation Having a Mixed Effect on Independent Contractors

Continuing the trend of recent years, independent-contractor status has remained a focus of state lawmakers during the first half of 2016. This continued attention has resulted in several recently enacted bills that will have a mixed effect on independent contractors and their clients. Thus far this year, generally helpful bills have been enacted that clarify the independent- contractor status of… Read more →

South Dakota Becomes the Latest State to Sign a Worker Misclassification MOU

South Dakota Becomes the Latest State to Sign a Worker Misclassification MOU

The U.S. Department of Labor, Wage and Hour Division (“WHD”) recently expanded the reach of its worker misclassification initiative by entering into a Memorandum of Understanding (“MOU”) with the South Dakota Department of Labor and Regulation, Division of Labor and Management. The MOU was signed on May 24, 2016. This is the 30th MOU that the WHD has entered into… Read more →

Ohio Bill Would make it More Difficult to Establish an Independent-Contractor Relationship

A bill was recently introduced in the Ohio legislature which would pose an existential threat to companies that do business with independent contractors. The bill, H.B. 568, would establish a new more stringent seven-part statutory test to determine a worker’s status for purposes of several state laws. H.B. 568 would amend the minimum wage, workers’ compensation, unemployment, and tax law… Read more →

States Clarify Worker Classification in the Sharing Economy

Several states have given businesses in the sharing economy something to celebrate: legislation that would clarify the independent-contractor status of individuals who obtain client opportunities through technology platforms. These legislative initiatives take two forms, namely, bills narrowly focused on transportation network company drivers (e.g., individuals who drive for ride-sharing companies such as Uber and Lyft), and broader bills that apply to individuals… Read more →

North Carolina Governor Resurrects Failed Worker-Classification Enforcement Proposal

North Carolina Governor Resurrects Failed Worker-Classification Enforcement Proposal

State agencies in North Carolina will be permitted to share information and work collaboratively to bring enforcement actions against suspected worker misclassification – in spite of the defeat of proposed legislation, H.B. 482, which would have permitted these activities. North Carolina Governor Pat McCrory (R) resurrected the information sharing elements of the failed bill by issuing Executive Order No. 83… Read more →