State Developments

State Bills Affecting Independent Contractors and their Clients

State Bill NumberTopicCurrent StatusBrief Description
State Bill NumberTopicCurrent StatusBrief Description
Alaska S.B. 112 Worker Misclassification Enforcement 4/6/2018 - Referred to Senate Committee on Finance. Establishes a multi-factor statutory test that an individual must satisfy to be determined to be an independent contractor for workers' compensation purposes.
Alaska H.B. 79 Worker's Compensation 4/4/2018 - Referred to Senate Committee on Finance. Permits the Workers' Compensation Division to assess a civil penalty of up to three times the workers' compensation premium due in the event that an employer has failed to insure or underinsured its employees as a result of misclassifying its employees or engaging in deceptive leasing practices. The bill also establishes a statutory test to determine whether an individual is an employee or independent contractor for workers' compensation purposes.
Arizona H.B. 2517 Task Force 2/7/2018 - Referred to House Committee on Rules. Establishes the "Employee Misclassification and Payroll Tax Fraud Advisory Task Force" to study and make recommendations regarding issues relating to employee misclassification and tax fraud in the construction industry.
California A.B. 2765 Worker Misclassification Enforcement 4/18/2018 In Assembly Committee on Labor and Employment. The bill provides that a "marketplace contractor" is an independent contractor relative to a digital marketplace - a digital network that connects marketplace contractors with third parties seeking their services - for purposes of all state laws; and would permit a digital marketplace to establish and contribute to a benefit plan for marketplace contractors.
Colorado S.B. 171 Worker Misclassification Enforcement 4/10/2018 - House Committee on Judiciary reported favorably with amendment. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for workers' compensation and unemployment purposes provided nine conditions are satisfied.
Florida H.B. 7087 Worker Misclassification Enforcement 3/23/2018 - Enacted. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided six conditions are satisfied.
Georgia H.B. 789 Worker Misclassification Enforcement Failed. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided six conditions are satisfied.
Georgia H.B. 1002 Unemployment Failed. Establishes seven factors to evaluate whether factor "A" of the "AB" test used to determine an individual's status, as an employee or independent contractor, for unemployment purposes is satisfied.
Hawaii H.B. 2602 Unemployment 4/12/2018 - House disagreed with Senate amendments. Replaces the "ABC" test with a twelve-factor test to determine whether an individual is an employee or independent contractor for unemployment purposes.
Hawaii S.B. 3106 Unemployment 2/14/2018 - Referred to Senate Committee on Judiciary. Same as H.B. 2602.
Indiana S.B. 166 Study Failed. Requires the Indiana Department of Revenue, Department of Labor, Worker's Compensation Board, and Department of Workforce Development to, for three years, report to the Interim Study Committee on Employment and Labor statistics on worker misclassification.
Indiana S.B. 305 Task Force Failed. Establishes the Payroll Fraud Task Force to address worker misclassification. Membership of the Task Force will include representatives from the Department of Labor, Department of Workforce Development, Department of Revenue, and Worker's Compensation Board.
Indiana H.B. 1286 Worker Misclassification Enforcement 3/14/2018 - Enacted. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - provided two conditions are satisfied.
Iowa H.S.B. 546 Worker Misclassification Enforcement 1/18/2018 - Referred to the House Committee on Commerce. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided four conditions are satisfied.
Iowa S.S.B. 3058 Worker Misclassification Enforcement 2/12/2018 - Became S.B. 2257. Same as H.S.B. 546.
Iowa S.B. 2257 Worker Misclassification Enforcement 4/4/2018 - Enacted. Formerly S.S.B. 3058.
Iowa H.S.B. 558 Worker Misclassification Enforcement 1/22/2018 - Referred to House Committee on Commerce. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided five conditions are satisfied.
Iowa H.S.B. 692 Worker Misclassification Enforcement 4/17/2018 - House Committee on Appropriations recommended Do Pass. For the fiscal year beginning July 1, 2018, the bill appropriates $329,631 to the Department of Workforce Development to investigate suspected incidents of worker-misclassification. This represents an increase of almost $115,000 relative to the prior fiscal year.
Iowa H.B. 2493 Worker Misclassification Enforcement 4/18/2018 - Introduced. Formerly H.S.B. 692.
Kentucky H.B. 220 Worker Misclassification Enforcement 3/21/2018 - Enacted. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided six conditions are satisfied.
Minnesota H.B. 4285 Penalties 3/29/2018 - Referred to House Committee on Commerce and Regulatory Reform. The bill establishes a civil penalty and a private right of action for the untimely payment of compensation to an independent contractor.
Missouri H.B. 1886 Worker Misclassification Enforcement 1/9/2018 - Withdrawn from further consideration. Recognizes a company's Section 530 status, but instead of exempting such qualifying taxpayer from employment taxes, the bill imposes a maximum employment tax rate of 1%.
Missouri H.B. 2156 Worker Misclassification Enforcement 2/8/2018 - Referred to House Committee on Rules - Administrative Oversight. Requires the Missouri Department of Labor and Industrial Relations and the Department of Revenue to waive any penalties, fees, or fines during an audit conducted by the Department of Labor and Industrial Relations regarding worker classification if the taxpayer has been determined by the IRS to be entitled to relief from federal employment taxes under Section 530.
Nebraska L.B. 784 Worker Misclassification Enforcement Failed. The bill prohibits a contractor from contracting with the state or any political subdivision if it has unpaid fines for misclassifying an individual as an independent contractor.
New Hampshire H.B. 1623 Worker Misclassification Enforcement 4/11/2018 - Senate Committee on Executive Departments and Administration recommended ought to Pass. The bill adds (i) wage theft, (ii) violations of worker safety practices, and (iii) worker misclassification as grounds for debarring a vendor from state contracts.
New Hampshire S.B. 416 Worker Misclassification Enforcement 3/12/2018 - Referred to House Committee on Commerce and Consumer Affairs. The bill provides that transportation network company drivers are presumed to be independent contractors relative to a transportation network company if a five-factor test is satisfied.
New Jersey S.B. 937 Worker Misclassification Enforcement 3/5/2018 - Referred to Senate Committee on Budget and Appropriations. Establishes the New Jersey Commission on Construction Industry Independent Contractor Reform to develop recommendations to address worker misclassification in the construction industry and ensure compliance with the Construction Industry Independent Contractor Act.
New Jersey A.B. 3418 Worker Misclassification Enforcement 2/15/2018 - Referred to Assembly Committee on Labor. Same as S.B. 937.
New Jersey S.B. 1293 Worker Misclassification Enforcement 2/1/2018 - Referred to Senate Committee on Labor. The bill amends the "ABC" test used to determine whether an individual is an employee or independent contractor for unemployment purposes by eliminating factors "B" and "C," which effectively replaces the "ABC" test with the common-law test.
Tennessee H.B. 1978 Worker Misclassification Enforcement 3/19/2018 - Substituted with S.B. 1967. The bill provides that a "marketplace contractor" is an independent contractor relative to a marketplace platform - a digital network that connects marketplace contractors with third parties seeking their services - for all purposes under state or local law provided six conditions are satisfied.
Tennessee S.B. 1967 Worker Misclassification Enforcement 4/9/2018 - Enacted. Same as H.B. 1978.
Utah H.B. 364 Worker Misclassification Enforcement 3/16/2018 - Enacted. Establishes a presumption that a "building service contractor" is an independent contractor relative to a service marketplace platform - an online software platform to connect building service contractors with customers - unless there is clear and convincing evidence that the parties intended to form an employment relationship.
Vermont H.B. 574 Worker Misclassification Enforcement 1/9/2018 - Referred to House Committee on Commerce and Economic Development. Replaces an "ABC" test and common law test to determine whether an individual is an employee or independent contractor for purposes of state unemployment and workers' compensation statutes, respectively, with a uniform "economic realities" test.
Vermont H.B. 681 Notice 1/23/2018 - Referred to House Committee on Commerce and Economic Development. Requires every employer to post a notice explaining the differences between an employee and independent contractor, penalties for improper classification, how an individual can file a complaint regarding his/her worker-classification, among other items.
Virginia H.B. 1106 Worker Misclassification Enforcement Failed. The bill would empower the Attorney General to engage in wide-ranging investigations of possible worker misclassification and, upon probable cause that a person has "wrongfully" misclassified an individual, file a complaint against such person in the applicable state circuit court.
Virginia H.B. 133 Worker Misclassification Enforcement Failed. Deems home healthcare workers or home adult day care service providers who render services in the private residence of their client independent contractors for labor law, tax withholding, workers' compensation and unemployment purposes.
Washington H.B. 2812 Worker Misclassification Enforcement Failed. Requires businesses that "facilitate the provision of services by workers to consumers seeking the services and where the provision of services by workers is taxed under 1099 federal tax status" to make contributions to a third-party benefit provider on behalf of such workers for workers' compensation and other benefits (e.g., health insurance and retirement). It also creates the Employee Fair classification Act, which establishes significant monetary penalties for worker misclassification and establishes a uniform "ABC" test for purposes of unemployment, workers' compensation and labor law.
Washington H.B. 2903 Worker Misclassification Enforcement Failed. Deems noncompetition agreements between an entity engaging an independent contractor and an independent contractor void and unenforceable.
Washington S.B. 6522 Worker Misclassification Enforcement Failed. Same as H.B. 2903.
Washington S.B. 6032 Study 3/27/2018 - Enacted. Appropriates $500,000 for fiscal year 2019 to study independent contractor relationships. The study will investigate (i) sources of income, (ii) amount of income derived from independent-contractor relationships, and (iii) benefits provided to such individuals.
West Virginia H.B. 4351 Worker Misclassification Enforcement Failed. The bill declares that an owner operator or independent contractor who provides trucking services to a trucking company is a "non-employee" for workers' compensation purposes. It also requires the owner operator or independent contractor to adhere to 13 requirements.
West Virginia S.B. 454 Worker Misclassification Enforcement Failed. Same as H.B. 4351.


Updated 4/20/2018