Nevada Bill Would Create a Task Force on Employee Misclassification

Nevada S.B. 95
Status: No Further Action Allowed, April 2013

This bill would:

  • Require the offices of the Labor Commissioner, Division of Industrial Relations of the Department of Business and Industry, Employment Security Division of the Department of Employment, Training and Rehabilitation, Department of Taxation and Attorney General to communicate between their respective offices information relating to suspected employee misclassification which is received in the performance of their official duties and which is not otherwise declared by law to be confidential, and
  • Allow such offices to communicate between their respective offices information relating to employee misclassification which is received in the performance of their official duties and which is otherwise declared by law to be confidential, if the confidentiality of the information is otherwise maintained under the terms and conditions required by law.

The bill would also create a Task Force on Employee Misclassification, consisting of ten members, one of which would be an independent contractor from the state.  The Task Force on Employee Misclassification would:

  • Evaluate the policies and practices of the Labor Commissioner, Division of Industrial Relations of the Department of Business and Industry, Employment Security Division of the Department of Employment, Training and Rehabilitation, Department of Taxation and Attorney General relating to employee misclassification.
  • Evaluate any existing fines, penalties or other disciplinary action relating to employee misclassification that are authorized to be imposed by a state agency.
  • Develop recommendations for policies, practices or proposed legislation to reduce the occurrence of employee misclassification.
  • On or before July 1, 2014, and on or before July 1 of each subsequent year, submit a written report to the Director of the Legislative Counsel Bureau for submission to the Legislative Commission. Such report would be required to include, without limitation, a summary of the work of the Task Force and recommendations for legislation concerning employee misclassification.

For purposes of the above, “employee misclassification” means the practice by an employer of improperly classifying employees as independent contractors to avoid any legal obligation under state labor, employment, and tax laws, including, without limitation, the laws governing minimum wage, overtime, unemployment insurance, workers’ compensation insurance, temporary disability insurance, wage payment and payroll taxes.

Effective Date

If passed, this act would become effective on July 1, 2013.

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