Left in Senate committee on Commerce and Labor and Continued to 2011

Bill S.B. 34

This bill would create a provision regarding worker misclassification, which states that if an individual performs services for an employer for remuneration, that individual shall be considered an employee of the party which pays that remuneration unless and until it is shown to the satisfaction of the department that:

1. The individual has been and will continue to be free from direction and control of the employer, both under his contract of service and in fact;

2. The service is outside the usual course of the business of the employer; and

3. The individual is customarily engaged in an independently established trade, occupation, profession, or business, both under his contract of service and in fact.

According to the bill, employee status will be found where the control exercised by the party paying remuneration is a general one, exercised directly or indirectly, over the physical activities of the purported employee and need not extend to all the details of the physical performance of the duties performed for the employer.

(5) Penalties for violations would include criminal penalties, inability to be awarded a public contract, and issuance of stop-work orders.  In addition, those who have been found to have misclassified workers would be required to post in English, Spanish and any other version required, a poster summarizing the requirements the bill in a conspicuous location where notices to employees are normally posted at each job site and office of the employer.