Protected: State Developments (Paying Members Only)

State Bills Affecting Independent Contractors and their Clients

State Bill NumberTopicCurrent StatusBrief Description
State Bill NumberTopicCurrent StatusBrief Description
Arkansas H.B. 1687 Unemployment Failed. Eliminates an exclusion from unemployment for personal care services performed by an individual for a home and community based service provider.
Arkansas H.B. 1850 Harmonization 4/16/2019 - Signed by the Governor. Replaces "ABC" test with the IRS 20-factor common-law test to determine an individual's status, as an employee or independent contractor, for unemployment and related purposes.
California A.B. 5 Worker Misclassification Enforcement 6/13/2019 - Referred to Senate Committee on Labor, Public Employment and Retirement. Codifies the "ABC" test adopted by the California Supreme Court case Dynamex Operations West, Inc. V. Superior Court of Los Angeles as the test to determine whether an individual is an employee or independent contractor for purposes of unemployment and the Labor Code.
California A.B. 71 Worker Misclassification Enforcement 2/25/2019 - Referred to Committee on Labor and Employment. Codifies the multi-factor test set forth in S.G. Borello & Sons, Inc. v. Department of Industrial Relations as the test to determine whether an individual is an employee or independent contractor for purposes of the California Labor Code.
California S.B. 238 Worker Misclassification Enforcement 4/24/2019 - Committee on Labor, Public Employment and Retirement: reconsideration granted. In response to the California Supreme Court decision in Dynamex, codifies the "economic realities" test used for purposes of the FLSA, to determine whether an individual is an employee or independent contractor for purposes of wage orders issued by the Industrial Welfare Commission.
Colorado H.B. 1267 Worker Misclassification Enforcement 5/16/2019 - Signed by the Governor. Provides that "wage theft" is a criminal offense and defines "wage theft" to include worker misclassification.
Connecticut S.B. 955 Unemployment Failed. Exempts a direct seller from the unemployment statute.
Florida H.B. 303 Worker Misclassification Enforcement Failed. Deems a Luxury Ground Transportation Company Driver and independent contractor relative to a Luxury Ground Transportation Company - an entity using a digital network to connect a rider to a driver who provides prearranged rides - provided four criteria are satisfied.
Illinois H.B. 2619 Worker Misclassification Enforcement 3/29/2019 - Re-referred to Rules Committee. Creates the Independent Contractor Payment Protection Act, which (i) requires an independent contractor providing $600 or more worth of services to enter into a written agreement with the client, (ii) requires a client to pay an independent contractor not later than the last day of the month following the month in which the compensation is earned, (iii) permits an independent contractor to file a complaint with the Department of Labor alleging a violation of this Act, and (iv) establishes penalties for violations of this Act.
Indiana S.B. 130 Unemployment 4/24/2019 - Signed by the Governor. Excludes from the definition of "covered employment" for unemployment purposes service performed by a driver who provides drive away operations when the vehicle being driven is the commodity being delivered and the driver entered into an agreement with the party arranging for the transportation that specified the driver as an independent contractor. For these purposes, "drive away" means the delivery service performed by a transport operator by which motor vehicles in transit are delivered by driving singly or in combination by the towbar, saddle mount, or full mount methods or any lawful combination of those methods, including coupling equipment or where a truck or tractor draws or tows a semitrailer or trailer in transit.
Indiana S.B. 289 Worker Misclassification Enforcement Failed. Requires the Department of State Revenue, State Department of Labor, Worker's Compensation Board and the Department of Workforce Development to annually report to the interim study committee on employment and labor the following: (1) number of employers that misclassified at least one individual, (2) the total number of misclassified individuals, (3) an estimate of the revenue not collected by the department due to worker misclassification, and (4) the amount of penalties and interest assessed against employers that misclassified individuals and the amount of such penalties and interest collected.
Indiana H.B. 1401 Worker Misclassification Enforcement Failed. Substantially similar to S.B. 289.
Indiana S.R. 87 Study 4/16/2019 - Referred to Committee on Pensions and Labor. Urges the legislative council to assign to the appropriate study committee the topic of worker misclassification reporting by state agencies.
Iowa H.B. 146 Advertisements 1/28/2019 - Referred to Committee on Labor. Prohibits a company from publishing, listing or posting within the company's organization, with any employment agency, job-listing service, or internet site, or any other public manner, an advertisement to recruit independent contractors without including the minimum rate of pay for the opportunity.
Iowa H.B. 89 Advertisements 1/24/2019 - Referred to Committee on Labor. Same as H.B. 146.
Iowa H.B. 24 Unemployment 1/17/2019 - Referred to Committee on Labor. Increases the penalty for willfully failing to pay a state unemployment compensation contribution with the intent to defraud the Department of Workforce Development and when the failure to pay involved the misclassification of the individual's wages on a Form 1099.
Iowa S.B. 608 Worker Misclassification Enforcement 5/17/2019 - Signed by the Governor. Appropriates to the Department of Workforce Development $379,631 for the Employee Misclassification Program.
Iowa S.S.B. 1250 Worker Misclassification Enforcement 3/28/2019 - Became S.B. 608. Same as S.B. 608.
Kentucky H.B. 53 Worker Misclassification Enforcement Failed. Addresses worker misclassification in the construction industry by (i) establishing a presumption that a person performing services for a contractor is an employee, unless a 6-factor test is satisfied, (ii) providing a system to make complaints regarding possible misclassification, (iii) requiring contractors to post a notice concerning worker classification, (iv) establishing an interstate information sharing system concerning instances of worker misclassification, and (v) establishing a civil penalty for worker misclassification.
Kentucky H.B. 355 Worker Misclassification Enforcement Failed. Adopts an "ABC" test to determine an individual's status, as an employee or independent contractor, for minimum wage and overtime purposes and establishes penalties for misclassifying an individual.
Maine S.B. 529 Penalties 4/25/2019 - Referred to Joint Committee on Labor and Housing in Conference. Provides penalties for misclassifying an individual for workers' compensation purposes.
Minnesota H.B. 374 Unemployment Failed. Deems as a statutory employee for unemployment purposes an individual who is an employee under the Federal Insurance Contributions Act.
Minnesota S.B. 1547 Unemployment 4/1/2019 - Substituted for H.B. 374. Same as H.B. 374.
Minnesota S.B. 2472 Worker Misclassification Enforcement 3/14/2019 - Referred to Committee on Jobs and Economic Growth Finance and Policy. Adds to factors to the statutory test to determine whether an individual is an employee or independent contractor in the trucking and messenger/courier industries.
Minnesota H.B. 2491 Worker Misclassification Enforcement 3/15/2019 - Referred to Committee on Jobs and Economic Development Finance Division. Same as S.B. 2472.
Mississippi H.B. 538 Worker Misclassification Enforcement Failed. Establishes a fine that shall not exceed 10% of a total bid on a public project to be imposed by the Department of Revenue against a contractor, who submits a bid on a public project, that intentionally misclassifies an individual for the purpose of affecting withholding, social security, unemployment tax or workers' compensation premium payments.
Missouri S.B. 313 Worker Misclassification Enforcement Failed. Replaces a common-law test with a statutory test to determine if an individual is an employee or independent contractor for purposes of a worker-misclassification statute.
Missouri H.B. 1137 Worker Misclassification Enforcement Failed. Similar to S.B. 313.
Montana E.O. 4 Task Force 4/15/2019 - Ordered Effective. Establish the Task Force on Integrity in Wage Reporting and Employee Classification in the Construction Industry.
Montana H.J.R. 59 Study 4/16/2019 - Tabled. Requests the Legislative Council to designate an appropriate interim committee to review federal wage and hour laws and regulations to make recommendations to improve compliance in the state.
Nebraska L.R. 213 Study 5/24/2019 - Referred to Committee on Business and Labor. Designates the Business and Labor Committee of the Legislature to study to examine potential solutions and approaches to benefits traditional enjoyed by employees for independent contractors.
Nevada S.B. 493 Task Force 6/8/2019 - Signed by the Governor. Establishes an intra-agency "Task Force on Employee Misclassification," which will evaluate existing policies and practices, and fines and penalties related to misclassification, and propose legislation to reduce the occurrence of worker misclassification.
New Jersey A.B. 5566 Worker Misclassification Enforcement 6/13/2019 - Referred to Assembly Committee on Labor. Establishes in the Department of Labor and Workforce Development, the Office of Labor Law Enforcement, which is charged with overseeing, evaluating, and coordinating enforcement activities of the department regarding violations of State labor laws, including worker misclassification.
New Mexico S.B. 105 Worker Misclassification Enforcement Failed. Creates a presumption that an individual in the construction industries is an independent contractor and establishes that the misclassification of certain individuals as independent contractors by a contractor is a misdemeanor, which carries a fine of not more than $1,000 and/or imprisonment for a term of less than one year.
New Mexico H.B. 456 Worker Misclassification Enforcement Failed. Establishes that a contractor who reports to a state agency or other client that an employee is an independent contractor, or for purposes of a program administered by a state agency intentionally and willfully misclassifies an independent contractor is guilty of a misdemeanor and shall be punished by a fine of not more than $5,000 or by imprisonment for a term of less than one year or both.
New Mexico S.B. 523 Worker Misclassification Enforcement Failed. Same as H.B. 456.
New York A.B. 1407 Worker Misclassification Enforcement 1/15/2019 - Referred to Committee on Labor. Permits any person whose competitive bid for a construction project was rejected to bring a lawsuit seeking damages against the winning bidder, if the winning bidder violated the labor law or the workers' compensation law by failing to pay required takes or secure insurance pursuant to such law for any reason including misclassifying any individual in its bid cost.
New York S.B. 2650 Task Force 1/28/2019 - Referred to Committee on Labor. Creates a "Task Force on Jobs and the Economy" to review and assess state laws and policies to determine whether they need to be updated in light of the growing "gig-economy." Among other items, the Task Force will assess state laws on employment status and determine whether individuals participating in the gig-economy are properly classified as independent contractors.
New York A.B. 4778 Task Force 2/5/2019 - Referred to Committee on Labor. Same as S.B. 2650.
New York A.B. 7089 Worker Misclassification Enforcement 4/5/2019 - Referred to Committee on Ways and Means. For purposes of the corporate welfare tax, adopts an "ABC" test to define the term "employee."
New York A.B. 8343 Worker Misclassification Enforcement Establishes a third classification of workers - Dependent Workers - and includes such dependent workers under the definition of "employee" for wage theft claims and related labor-law purposes.
North Carolina H.B. 189 Workers' Compensation 2/27/2019 - Referred to Committee on Commerce. Requires a sole proprietor to maintain a workers' compensation insurance policy.
Ohio H.B. 80 Worker Misclassification Enforcement 6/11/2019 - Referred to Senate Committee on Insurance and Financial Institutions. Directs the Superintendent of Industrial Compliance to adopt rules to determine whether an individual is an employee or independent contractor that are consistent with the common-law test set froth in Internal Revenue Code section 3121(D)(2) for workers' compensation, unemployment and related purposes. Also requires state agencies to share information concerning incidences of worker misclassification.
Oklahoma H.B. 1095 Harmonization 5/10/2019 - Signed by the Governor. Replaces an "ABC" test with the IRS 20-factor common-law test to determine an individual's status, as an employee or independent contractor, for unemployment purposes.
Oregon H.B. 2498 Worker Misclassification Enforcement 1/22/2019 - Referred to Committee on Rules. Adds an additional factor to the statutory test to determine whether an individual is an employee or independent contractor for purposes of income tax, workers' compensation and unemployment.
Oregon S.B. 750 Worker Misclassification Enforcement 4/16/2019 - Referred to Joint Committee on Ways and Means. Permits an aggrieved person, whistleblower or a representative organization to bring a public enforcement action for an alleged violation of certain labor and employment laws on behalf of and in the name of the State of Oregon.
Pennsylvania H.B. 716 Task Force 4/5/2019 - Referred to Committee on Labor and Industry. Establishes the Joint Agency Task Force on Misclassification of Employees, which will investigate worker misclassification and develop and implement a plan to reduce misclassification.
Pennsylvania H.B. 717 Penalties 4/5/2019 - Referred to Committee on Labor and Industry. Increases the penalty for misclassifying an individual as an independent contractor in the construction industry.
Rhode Island H.B. 5848 Penalties 3/20/2019 - House Committee on Labor recommends measure held for further study. Increases the penalty for misclassifying an individual as an independent contractor.
Rhode Island S.B. 510 Penalties 5/2/2019 - Referred to Committee on Labor. Increases the penalty for misclassifying an individual as an independent contractor.
Tennessee H.B. 539 Harmonization 5/13/2019 - Signed by the Governor. Replaces "ABC" test with the IRS 20-factor common-law test to determine an individual's status, as an employee or independent contractor, for unemployment, workers' compensation, wage regulations and the state's Occupational Safety and Health Act of 1972.
Tennessee S.B. 466 Harmonization 4/24/2019 - Substituted by H.B. 539. Same as H.B. 539.
Texas H.B. 28 Penalties Failed. Imposes a penalty against a contractor or subcontractor performing services for a contract awarded by a public body and who misclassifies a worker to avoid paying the worker the prevailing wage for such contract, in the amount of $90 per day that the worker is misclassified.
Texas S.B. 1917 Penalties Failed. Same as H.B. 28.
Texas H.B. 2391 Unemployment Failed. Presumes an individual who performs services for wages or under an express or implied contractor of hire is an employee for unemployment purposes and establishes a penalty for repeated instances of worker-misclassification.
Texas S.B. 1868 Unemployment Failed. Same as H.B. 2391.
Vermont H.B. 220 Worker Misclassification Enforcement 2/13/2019 - Referred to Committee on Commerce and Economic Development. Permits an individual to file a complaint with the Attorney General concerning the possible misclassification of the individual for unemployment or workers' compensation purposes.
Vermont S.B. 108 Worker Misclassification Enforcement 5/16/2019 - To Conference Committee. Same as H.B. 220.
Vermont H.B. 483 Worker Misclassification Enforcement 2/28/2019 - Referred to Committee on Judiciary. Establishes the Vermont Private Attorneys General Act, which permits an individual to bring a public enforcement action asserting a claim that the individual was misclassified, among other claims.
Vermont S.B. 139 Worker Misclassification Enforcement 3/22/2019 - Referred to Committee on Economic Development, Housing and General Affairs. Same as H.B. 483.
Washington H.B. 1108 Study 1/14/2019 - Referred to Committee on Appropriations. 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.
Washington S.B. 5326 Worker Misclassification Enforcement 1/17/2019 - Referred to Committee on Labor and Commerce. Removes statutory exemptions for barber and cosmetology services in which an individual rents a booth from the proprietor for purposes of from unemployment and industrial insurance.
Washington H.B. 1515 Worker Misclassification Enforcement 2/22/2019 - Referred to Committee on Rules. Creates a uniform statutory test for purposes of prevailing wage laws, wage deduction laws, wage payment laws, minimum wage laws, and unemployment compensation laws and establishes civil penalties for misclassifying an individual.
Washington S.B. 5513 Worker Misclassification Enforcement 1/23/2019 - Referred to Committee on Labor and Commerce. Same as H.B. 1515.
Washington H.B. 1601 Worker Misclassification Enforcement 1/25/2019 - Referred to Committee on Labor and Workplace Standards. Similar to H.B. 1515.
Washington S.B. 5690 Worker Misclassification Enforcement 1/28/2019 - Referred to Committee on Labor and Commerce. Similar to H.B. 1515.
Washington S.B. 5478 Worker Misclassification Enforcement 4/28/2019 - Returned to the Senate. Deems certain noncompetition covenant void and unenforceable against an independent contractor.
Washington H.B. 1450 Worker Misclassification Enforcement 5/8/2019 - Signed by the Governor. Substantially similar to S.B. 5478.
Washington S.B. 5987 Minimum Wage 3/18/2019 - Referred to Committee on Labor & Commerce. Applies minimum wage requirements to independent contractors.
West Virginia H.B. 2365 Harmonization Failed. Replaces an "ABC" test with the IRS 20-factor common-law test to determine an individual's status, as an employee or independent contractor, for unemployment and workers' compensation purposes.
West Virginia S.C.R. 56 Harmonization 3/9/2019 - Senate Passed, Referred to House. Requests the joint Committee on Government and Finance to study the utility of clarifying the definition of employee for unemployment and workers' compensation purposes.
Wisconsin E.O. 20 Task Force 4/15/2019 - Signed by the Governor. Establishes the Joint Enforcement Task Force on Payroll Fraud and Worker Misclassification to coordinate investigations concerning worker misclassification.


Updated 6/20/2019

This content is for members only. Become a member now to get access to this and other informative members-only content.