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 2/21/2017 - Referred to Committee on Commerce and Small Business. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.
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 1/25/2017 - Referred to Committee on Labor & Commerce, Committee on Judiciary, and Committee on Finance. Same as S.B 40 (companion bill).
Alaska H.B. 132 Worker Misclassification Enforcement 2/15/2017 - Referred to Committee on Transportation, and Committee on Labor and Commerce. Deems transportation network company drivers to be independent contractors relative to a transportation network company for workers' compensation purposes provided four conditions are satisfied.
Florida H.B. 221 Worker Misclassification Enforcement 2/21/2017 - Committee on Government Accountability reported favorably. 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 1/25/2017 - Referred to banking and Insurance; Judiciary; and Rules Committees. Same as H.B. 221 (companion bill).
Hawaii S.B. 345 Unemployment 2/10/2017 - Measure deferred. 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 2/17/2017 - Referred to Committee on Finance. Same as S.B. 345 (companion bill).
Hawaii H.B. 966 Family Leave 1/27/2017 - Referred to Committee on Labor and Public Employment, and Committee on Consumer Protection and Commerce. 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.
Indiana S.B. 135 Worker Misclassification Enforcement 1/4/2017 - Referred to Committee on Pensions and Labor. 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 1/12/2017 - Referred to Committee on Pensions and Labor. 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.
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 2/9/2017 - Referred to Committee on Economic Development & Workforce Investment. 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.
Missouri H.B. 356 Worker Misclassification Enforcement 2/14/2017 - Referred to Committee on Rules - Administrative Oversight. 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 2/16/2017 - Committee on Transportation and Infrastructure voted Do Pass. 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 2/2/2017 - Referred to Senate Committee on Transportation and Infrastructure. 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 1/25/2017 - Introduced. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided three conditions are satisfied.
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. 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.
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.
Rhode Island H.B. 5175 Worker Misclassification Enforcement 1/19/2017 - Referred to Committee on Finance. 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 2/1/2017 - Referred to Committee on Business and Commerce. 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 2/13/2017 - Referred to Committee on Transportation. Same as S.B. 361 (companion bill).
Texas S.B. 592 Unemployment 2/8/2017 - Referred to Committee on Natural Resources & Economic Development. 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 1/26/2017 - Filed. Same as S.B. 592 (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.
Washington H.B. 1116 Worker Misclassification Enforcement 1/26/2017 - Referred to Committee on Appropriations. 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 1/23/2017 - Passed to Rules Committee. 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 2/6/2017 - Referred to Committee on Appropriations. 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 an "ABC" test or ten-part statutory test for purposes of wage and hour law, workers' compensation, and unemployment.
Washington S.B. 5527 Worker Misclassification Enforcement 1/27/2017 - Referred to Committee on Commerce, Labor & Sports. Same as H.B. 1300 (companion bill).
Washington S.B. 5620 Worker Misclassification Enforcement 2/21/2017 - Committee on Transportation recommended Do Pass. Deems transportation network company drivers to be independent contractors relative to a transportation network company provided four conditions are satisfied.


Updated 2/23/2017