State Developments

State Bills Affecting Independent Contractors and their Clients

State Bill NumberTopicCurrent StatusBrief Description
State Bill NumberTopicCurrent StatusBrief Description
Alabama H.B. 283 Worker Misclassification Enforcement Failed. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.
Alabama S.B. 271 Worker Misclassification Enforcement Failed. Same as H.B. 283 (companion bill).
Alaska S.B. 40 Workers' Compensation 1/25/2017 - Referred to Committee on Labor & Commerce, and Committee on Finance. Creates an 11-part statutory test, and permits the Division of Workers' Compensation to assess a civil penalty of up to three times the workers' compensation premium against an employer that fails to insure or provide required security as a result of worker misclassification.
Alaska H.B. 79 Workers' Compensation 4/14/2017 - Referred to Committee on Finance. Same as S.B 40 (companion bill).
Alaska H.B. 132 Worker Misclassification Enforcement 6/15/2017 - Signed by the Governor. Deems transportation network company drivers to be independent contractors relative to a transportation network company for workers' compensation purposes provided four conditions are satisfied.
Alaska S.B. 14 Worker Misclassification Enforcement 4/3/2017 - Referred to Committee on Rules. Same as H.B. 132 (companion bill).
Florida H.B. 221 Worker Misclassification Enforcement 5/9/2017 - Signed by the Governor. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.
Florida S.B. 340 Worker Misclassification Enforcement Failed. Same as H.B. 221 (companion bill).
Hawaii S.B. 345 Unemployment 3/9/2017 - Failed first crossover deadline. Requires contracting parties to satisfy the current "ABC" test and now the IRS 20 factor test to establish an independent-contractor relationship.
Hawaii H.B. 347 Unemployment 4/28/2017 - Measure deferred. Same as S.B. 345 (companion bill).
Hawaii H.B. 966 Family Leave 3/9/2017 - Failed first crossover deadline. Amends the definition of "employee" for purposes of the Family Leave law to include "a person who would be classified as an independent contractor under the common law employee test," which makes independent contractor entitled to earn a total of four weeks of family leave.
Hawaii H.C.R. 151 Worker Misclassification Enforcement 4/6/2017 - Failed first crossover deadline. Urges the Department of Labor and Industrial Relations to train its auditors to require satisfaction of at least 15 of the 20 factors used for employment determinations when both parties contemplate an independent contractor relationship with one another.
Hawaii H.R. 98 Worker Misclassification Enforcement 3/14/2017 - Referred to Committee on Labor and Public Employment. Urges the Department of Labor and Industrial Relations to train its auditors to require satisfaction of at least 15 of the 20 factors used for employment determinations when both parties contemplate an independent contractor relationship with one another.
Indiana S.B. 135 Worker Misclassification Enforcement Failed. Authorizes the Department of State Revenue, the Department of Labor, the Worker's Compensation Board, and the Department of Workforce Development to issue subpoenas for the attendance of witnesses and the production of documents when conducting an investigation regrading suspected instances of worker misclassification by a construction contractor. Authorizes the Worker's Compensation Board to issue a stop work order against an employer that fails to provide worker's compensation when required.
Indiana S.B. 463 Task Force Failed. Requires the Department of Workforce Development, the Department of State Revenue, and the Worker's Compensation Board to share information regarding instances in which a construction contractor paid a worker in cash. Additionally, establishes the Payroll Fraud Taskforce to investigate suspected incidents of worker misclassification.
Iowa H.B. 74 Unemployment 2/1/2017 - Referred to Committee on Labor. In the event the Department of Workforce Development ("Department") finds that an employer willfully failed to pay unemployment contributions, and such failure to pay involves worker misclassification, the Department would be permitted to impose a penalty equal to 100% of the amount the employer failed to pay.
Iowa S.B. 513 Worker Misclassification Enforcement 5/12/2017 - Signed by the Governor. Appropriates $429,631 to hire 5 employees to investigate worker misclassification during the fiscal year beginning July 1, 2017, through June 30, 2018, and $214,815 to hire 5 more full time employees during the fiscal year beginning July 1, 2018, through June 30, 2019.
Iowa H.S.B. 205 Worker Misclassification Enforcement 4/17/2017 - Referred to Committee on Appropriations. Same as S.B. 513.
Kansas S.B. 134 Unemployment 2/2/2017 - Referred to Committee on Commerce. Increases the penalty for a second or subsequent violation of knowingly and intentionally misclassifying an individual as an independent contractor, from a class C nonperson misdemeanor to a severity level 10, nonperson felony.
Kentucky H.B. 196 Worker Misclassification Enforcement Failed. Establishes a presumption that a person performing services for a construction contractor is presumed to be an employee of the contractor unless a six factor test is satisfied. Permits an individual that believes he/she was misclassified to file a civil lawsuit or file a complaint with the Division of Employment Standards, Apprenticeship and mediation in the Department of Workplace Standards. The bill also establishes civil penalties for worker misclassification and requires certain state agencies to share information regarding instances of worker misclassification.
Louisiana H.B. 527 Worker Misclassification Enforcement Failed. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.
Massachusetts S.B. 1043 Worker Misclassification Enforcement 2/27/2017 - Referred to the Committee on Labor and Workforce Development. Replaces the "ABC" test to define an "employee" for purposes of the Massachusetts Labor Law by incorporating by reference the IRS common law test and Section 530 of the Revenue Act of 1978.
Massachusetts H.B. 1039 Worker Misclassification Enforcement 2/27/2017 - Referred to the Committee on Labor and Workforce Development. Provides that Mystery Shoppers are not employees for purposes of Massachusetts Labor Laws provided four conditions are satisfied.
Massachusetts H.B. 1019 Worker Misclassification Enforcement 2/27/2017 - Referred to the Committee on Labor and Workforce Development. Amends the "ABC" test from requiring conditions A and B and C to be satisfied, to require conditions A and B or C to be satisfied.
Massachusetts H.B. 1036 Worker Misclassification Enforcement 2/27/2017 - Referred to the Committee on Labor and Workforce Development. Replaces the "ABC" test to define an "employee" for purposes of the Massachusetts Labor Law with an "ABC" Plus test that requires the individual to be a "separate business entity" that satisfies a 12-part test.
Minnesota H.B. 2476 Worker Misclassification Enforcement 3/20/2017 - Referred to Committee on State Government Finance. Defines employees of small employers (a private business reporting less than $100,000 in gross annual receipts in the preceding calendar year and employing one or more employees) as independent contractor for employment law purposes.
Missouri H.B. 356 Worker Misclassification Enforcement Failed. Recognizes a company's Section 530 status, but instead of exempting such qualifying taxpayer from employment taxes, imposes a maximum employment tax rate of 1%.
Missouri SB 185 Worker Misclassification Enforcement Failed. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.
Missouri H.B. 130 Worker Misclassification Enforcement 4/24/2017 - Signed by the Governor. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided three conditions are satisfied. Also permits the transportation network company and transportation network company driver to agree in writing that the driver is an employee and not an independent contractor relative to the transportation network company.
Missouri H.B. 764 Worker Misclassification Enforcement Failed. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided three conditions are satisfied.
New Jersey A.B. 4705 Portable Benefits 6/19/2017 - Reported from the Assembly Committee on Appropriations. Requires a "contracting agent" that facilitated the provision of services by at least 50 individuals during the prior 12-month period, to contribute funds to a portable benefit plan for such individuals.
New Jersey A.B. 5012 Worker Misclassification Enforcement 6/15/2017 - Referred to Assembly Labor Committee. Changes the "ABC" test used to determine whether an individual is an employee or independent contractor for unemployment purposes to only consider the "A" factor: whether the individual has been and will continue to be free from control of the employer.
New Jersey S.B. 3321 Worker Misclassification Enforcement 6/19/2017 - Referred to Senate Labor Committee. Same as A.B. 5012 (companion bill).
New York S.B. 1794 Worker Misclassification Enforcement 1/10/2017 - Referred to Labor Committee. Imposes penalties on clients and certain officers and agents of clients that do not compensate independent contractors as set forth in their agreement, but no later than the last day of the month following the month in which the compensation is earned.
New York A.B. 2580 Worker Misclassification Enforcement 1/20/2017 - Referred to Labor Committee. Permits any person whose competitive bid for a construction project was rejected to file a lawsuit against the winning bidder if the winning bidder violated the labor law or workers' compensation law by failing to pay required taxes or secure insurance for any reason including worker misclassification. And, provides statutory damages.
New York A.B. 7958 Worker Misclassification Enforcement 5/23/2017 - Referred to Labor Committee. Permits an "aggravated employee," which includes an individual that believes he or she has been misclassified, to bring a public enforcement action on behalf of the Commissioner of Labor for a violation of New York Labor laws.
New York S.B. 6426 Worker Misclassification Enforcement 5/18/2017 - Referred to Labor Committee. Same as A.B. 7958 (companion bill).
North Carolina S.B. 407 Worker Misclassification Enforcement 8/11/2017 - Signed by the Governor. Enacts the Employee Fair Classification Act, which establishes the Employee Classification Section within the Industrial Commission to receive reports of worker misclassification, coordinate with relevant state agencies the investigation and prosecution of reports or worker misclassification, share information regarding reports of worker misclassification with the State Department of Labor, Division of Employment Security, Department of Revenue, and Industrial commission, among other activities to address worker misclassification.
North Carolina S.B. 398 Unemployment 4/10/2017 - Re-referred to Committee on Commerce and Insurance. Excludes "service performed by a direct seller" from the definition of "employment" for purposes of unemployment insurance.
Ohio S.B. 38 Worker Misclassification Enforcement 2/8/2017 - Referred to Committee on Transportation, Commerce and Workforce. Requires the Director of Commerce, the Director of Job and Family Services, the Tax Commissioner, and the Administrator of Workers' Compensation to share information concerning suspected incidents of worker misclassification.
Oregon H.B. 3169 Worker Misclassification Enforcement 3/6/2017 - Referred to Committee on Business and Labor. Requires the Department of Revenue to adopt rules to direct appeals relating to the classification of a worker as an independent contractor from the Department of Revenue to the Office of Administrative Hearings.
Oregon H.B. 3246 Worker Misclassification Enforcement 4/5/2017 - Public hearing held. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided the driver agrees in a signed contract that (1) the driver may connect to the platform at the dates and times the driver chooses, (2) may connect to another platform, and (3) may engage in any other occupation or business.
Rhode Island H.B. 5175 Worker Misclassification Enforcement 8/3/2017 - Signed by the Governor. Increases the penalty for worker misclassification from $500 to $1,500 for each misclassified individual for a first offense.
Texas S.B. 361 Worker Misclassification Enforcement Failed. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided five conditions are satisfied.
Texas H.B. 100 Worker Misclassification Enforcement 5/29/2017 - Signed by the Governor. Same as S.B. 361 (companion bill).
Texas S.B. 592 Unemployment Failed. Establishes a presumption that "an individual performing a service for wages or under an express or implied contract of hire" is an employee of the person for whom the service is performed, and permits the Unemployment Commission to assess a penalty in an amount not to exceed $200 for each individual that is misclassified.
Texas H.B. 1304 Unemployment Failed. Same as S.B. 592 (companion bill).
Texas H.B. 3357 Worker Misclassification Enforcement Failed. Establishes a $90 penalty for misclassifying a worker while working under a contract awarded by a public body or as a subcontractor thereunder.
Texas H.B. 4075 Worker Misclassification Enforcement Failed. Provides that the state Retirement System will use a common law test to determine whether an individual is an employee or independent contractor.
Texas S.B. 1664 Worker Misclassification Enforcement 6/15/2017 - Signed by the Governor. Same as H.B. 4075 (companion bill).
Vermont H.B. 119 Worker Misclassification Enforcement 1/24/2017 - Referred to the Committee on Commerce and Economic Development. Establishes a uniform statutory test for unemployment and workers' compensation purposes.
Vermont H.B. 109 Study 1/24/2017 - Referred to Committee on General, Housing and Military Affairs. Creates the Contingent Work and Portable Employee Benefits Study Committee, which will study contingent work, and mechanisms for creating insurance, retirement, and other types of employment benefits that are portable and easily accessible to workers who are not employed as traditional full-time or permanent employees, including freelancers, self-employed workers, and contingent workers.
Vermont S.B. 73 Worker Misclassification Enforcement 2/7/2017 - Referred to Committee on Economic Development, Housing and General Affairs. Establishes the Vermont Commission on Employee Misclassification, which will recommend measures, legislation or regulatory changes to improve enforcement of worker misclassification, amend the definition of "employee" and "independent contractor" to make them more consistent with the definitions in the Federal Fair Labor Standards Act, among other items. Requires the Secretary of Administration to ensure state agencies coordinate worker misclassification enforcement actions and share information concerning misclassification. Also permits individuals to file a complaint of worker misclassification with the State Attorney General.
Vermont H.B. 223 Worker Misclassification Enforcement 2/9/2017 - Referred to Committee on Commerce and Economic Development. Establishes a uniform "economic realities" test for unemployment and workers' compensation purposes, creates an interagency and departmental task force to coordinate efforts to address worker misclassification, and provides penalties for worker misclassification.
Vermont H.B. 323 Worker Misclassification Enforcement 2/17/2017 - Referred to Committee on Commerce and Economic Development. Similar, but not identical to H.B. 323.
Vermont S.B. 141 Workers' Compensation 3/28/2017 - Referred to the Senate Committee on Economic Development, Housing and General Affairs. Establishes a statutory test to determine whether an individual is an employee or independent contractor for workers' compensation purposes.
Washington H.B. 1116 Worker Misclassification Enforcement 6/23/2017 - Withdrawn from House Committee on Rules: placed on second reading. Amends the Family and Medical Leave law. It provides that an independent contractor is not eligible for coverage, and that an individual is an independent contractor if it satisfies an "ABC" test or seven-part statutory test.
Washington S.B. 5125 Worker Misclassification Enforcement 4/19/2017 - Signed by the Governor. Provides that an "independent contractor relationship" in the Realtor context means a relationship that satisfies the following requirements: (A) No written agreement with the broker or managing broker provides that the broker or managing broker is an employee of the firm; and (B) Substantially all of the broker's or managing broker's compensation is for services related to real estate brokerage services provided by the firm.
Washington H.B. 1300 Worker Misclassification Enforcement 6/21/2017 - Reintroduced and retained in present status. Establishes the Employee Fair Classification Act, which would, among other items, provide that an individual is an independent contractor so long as the individual satisfies a ten-part statutory test for purposes of wage and hour law, workers' compensation, and unemployment.
Washington S.B. 5527 Worker Misclassification Enforcement 6/28/2017- Executive session scheduled. Same as H.B. 1300 (companion bill).
Washington S.B. 5620 Worker Misclassification Enforcement 6/21/2017 -Reintroduced and retained in present status. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.


Updated 8/15/2017