Employee Classification Act Fails in House

Bill: H 1120

Employee Classification Act. Misclassification act that applies an ABC Test (with an alternative for an independently established business under prong C) to the construction industry for purposes of labor department. Construction is specifically defined to include moving construction-related materials on the job site to or from the job site. Provides that owner-operators are independent contractors in accordance with existing Indiana law. Requires Know Your Rights notice, permits any interested party to file a complaint with the department of labor. Department may issue cease and desist order, may issue penalties, and may obtain injunctive relief. Provides for criminal prosecution by the Attorney General, disbarment from state contracts, and a private cause of action on an individual or class basis.

Status as of May 31, 2010: Failed – Adjourned (March 14, 2010)

Source: American Trucking Association and/or Direct Selling Association